3 March 2020 – Brainsre.news
BBVA and Cerberus have established the final terms of the venture they announced in November 2017, which essentially involves the American fund’s acquisition of the bank’s real estate business. The two partners have created a company together, Divarian, in which Cerberus controls 80% of the capital and BBVA 20%.
Apart from the lower volume of assets transferred, the sale price has also been adjusted to reflect the revenues and expenditure assigned to the assets, and the labour costs, according to Expansión. Diverian’s annual accounts for 2018 highlighted that “initially, the planned operation included real estate assets with a gross book value of €13 billion, along with the assets and employees necessary for the independent management of the activity. That agreement valued the business at €5 billion, and so the consideration payable for 80% of the shares would amount to €4 billion.”
Nevertheless, the definitive transaction price will depend on the final volume of assets transferred, which could vary due to sales made by BBVA between the announcement of the agreement and its formalisation (signing), amongst other reasons.
Original Story: Brainsre.news
Translation/Summary: Carmel Drake