Metrovacesa on the Brink of Selling 27% Stake in Gecina For €1.8 Bn

2/06/2014 – Expansion

Metrovacesa, controlled by Santander, Bankia, BBVA, Sabadell and Popular, brings the sale of its share in the French group Gecina to an end. After nearly a year of negotiations, the real estate company is bound to earn around €1.8 billion for the stake.

Finally, it accepted the joint bid of Blackstone and Ivanhoé Cambridge, affiliate of Caisse de Dépôt du Québec. These two funds already hold together 23% of Gecina.

Joaquin Rivero, president of Metrovacesa, entered the stake of Gecina in 2005 paying 89.75 Euros a share to AGF and Azur. Now he will obtain 106 Euros. Few weeks ago, Metrovacesa trimmed its capital by over €1 billion.

In February, Blackstone and Ivanhoé Cambridge acquired 14.45 million shares of Gecina (corresponding to 22.98% of the stake) from Joaquín Rivero and Bautista Soler. The shares stood as a guarantee for the €2 billion loan granted to Rivero and Soler´s property companies in 2006 to buy 30% of Gecina.

Blackstone and Ivanhoé fought for the shares with Rivero in the court. At the moment, the funds weight up launching a takeover offer for the entire French firm. Perhaps a third investor could enter the stake and take 50% of it.


Original article: Expansión (by Rocío Ruiz)

Translation: AURA REE