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Yahoo
23-04-2025
- Business
- Yahoo
Italy's state-owned payments firm PagoPA sale hits valuation dispute
Italy's state-owned payments firm PagoPA has encountered disagreements over its valuation in the planned sale to the state mint and postal operator Poste Italiane, reported Reuters. The transfer of PagoPA would keep it under state-controlled entities, with Poste Italiane acquiring a minority stake in the company. State-backed Poste Italiane has diversified its operations, branching out from its traditional mail and parcel services into payments, broadband, and energy sectors. Poste Italiane and the state mint have raised concerns about a €500m valuation of Treasury-owned PagoPA, set by Treasury adviser KPMG, the report said citing sources. The state mint and Poste Italiane have reviewed PagoPA's financial data to assess whether its business plan justifies the proposed valuation, the report added. The parties involved either declined to comment or were not immediately available for comment to Reuters. PagoPA processed €33bn in public administration payments so far this year. It is expected to play a central role in the Italian government's plan to develop a digital wallet through the IO app. The app allows users to store official documents, including digital identity credentials, and make payments for public services. Last year, Italy's Treasury appointed KPMG to conduct a valuation of PagoPA. The company's electronic payment system allows citizens and businesses to pay public bodies through a standardised process, using both online and offline channels via participating payment service providers. "Italy's state-owned payments firm PagoPA sale hits valuation dispute " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
22-04-2025
- Business
- Reuters
Sale of Italian payments company PagoPA to mint and Poste hits valuation snag, sources say
MILAN, April 22 (Reuters) - A dispute over valuation is complicating Italy's plan to sell PagoPA, which handles digital payments to the public administration, to the state mint and financial conglomerate Poste Italiane ( opens new tab, two sources close to the matter said. The prospect of PagoPA changing hands, even though it would remain under state-controlled entities, has alarmed Italy's crowded banking sector, which is grappling with increasing competition in the digital payment business. Under the plan, state-backed Poste - which over time has expanded beyond its core mail and parcel business into payments, broadband services and energy supply - would retain a minority stake in PagoPA. But Poste and the mint are questioning a 500 million-euro ($575.30 million) price tag pegged by Treasury adviser KPMG for the Treasury-owned company, the sources told Reuters, asking not to be named. The mint and Poste have obtained access to PagoPA's financial data for more clarity on its accounts amidst doubts over whether its business plan supports the valuation, the sources said. The involved parties were not immediately available for comment, or declined to comment. PagoPA, which this year has handled payments towards Italy's public administration worth 33 billion euros, is set to play a leading role in the Italian government's efforts to set up a digital wallet through the IO app. The app enables Italians to store both official documents, including proof of their digital identity to access public services online, but also payments. Italian banks fear Poste could use PagoPA to strengthen its position in the digital payments market as they deal with the increasing presence of tech giants such as Apple (AAPL.O), opens new tab Google owner Alphabet (GOOGL.O), opens new tab or PayPal (PYPL.O), opens new tab. The ballooning use of stablecoins, which are a type of cryptocurrencies designed to maintain a constant value, is also a factor of concern for European banks as they give people a means of payment for cross-border transactions, without the need for a bank account. ($1 = 0.8691 euros)
