***Operazione Sveglia Bawag***
Grazie a tutti per l'aiuto. Riteniamo che Bawag sia molto sottovalutata e con la presente email non riteniamo di poter cambiar le cose ma almeno fare arrivare tante voci diverse a IR di Bawag.
Da inviare a email adress:
[email protected]
To the attention of Mr Henke and Mr Del Fabro,
I am an investor in both of the following hybrid capital securities issued by Bawag:
Bawag Cap Fin Jersey II DE0008600966
and
Bawag Cap Fin Jersey XS0119643897
I am writing to you regarding the many liabilities management operations ( ie buy back of hybrid securities ) that are happening on the market.
All the banks are making great profits and increasing their Core Tier 1 ratio in a very cheap way. Most of the European banks have done it and most recently Unicredit, Credit Agricole, Banco Popolare and Banca Intesa.
Regarding Austria, Bank of Austria Unicredit Group has made an offer on 2 different issues targeted to retail and institutional therefore I can imagine that even the Austrian Central bank has approved such kind of transaction. The result of this last offer was pretty good as almost 65% of the total was tendered.
I have noticed that yesterday Bawag has made an offer to buyback a covered bond with a loss ( buying it above par ) and with zero impact on capital. Would you pls explain me the reason why Bawag has not moved yet in making a tender offer on the above mentioned hybrid securities ? The more time passes the more the prices of these securities move higher and the more Bawag should pay in an hypothetical tender offer. At the beginning of the year the security XS0119643897 was trading at around 40% and it is now trading at around 60% that represents, out of the total Eur 150 mio issue, in case of a future tender offer a missed profit of already Euro 30,000,000. Including the other hybrid security the missed potential total profit I have calculated so far is around Euro 40,000,000. This profit could have been easily utilized in increasing the total capital of the bank in a very cheap way.
We have reason to believe that there is still time to make a profitable tender offer. We have been calculating that a tender offer at 75% on XS0119643897 and 75% on DE0008600966 with an acceptance ratio of the tender offer at 70% could mean a profit for Bawag of around Euro 52,500,000.
I thank you in advance for your answer,
with best regards,