8/07/2014 – Expansion
Sabadell is going to earn around €200 million from sale of its collection agency. The Catalonian entity has received 10 non-binding offers from international investors in the past weeks. Four best bidders were chosen, among which such big-name funds as Elliot, Centerbrige and Lindorff reverberate.
The selected finalists will now analyze thoroughly the division of Sabadell and will submit their binding offers before July 21st.
The first proposals oscillated around €150 million with the highest bid of almost €200 million. If the price is maintained, the sale will come down to history as the largest collection agency transfer in Spain. Until now, Popular, Banesto, BMN, Santander and Pastor sold their divisions for joint €330 million.
Individuals and SMEs
The process, named the “Budapest Project”, is being advised by Montalban Atlas Capital. It includes the Recovery arm managing past due loans worth of over €20 billion. Default on these credits exceeds 30 days in case of individuals and 90 for the SMEs.
Sabadell will transfer the unit in exchange for collection services which the buyer will be obliged to provide for the next 10-15 years.
Among the potential purchasers, Lindorff seems to be on velvet. The Norwegian platform is the sector´s leader with a 13.2% market share and annual income of €60 million, as per the information of DBK. The company bought Reintegra, the collection agency of Santander, for €35 million and last year it acquired the phone debt collection division of BMN for €39 million.
In turn, U.S. fund Centerbridge begun its Spanish adventure in 2012 with the purchase of Aktua from Banesto for €100 million. Few months ago, the firm acquired the real estate servicer of BMN for €50 million. The sector cannot believe its eyes that the fund vies for a collection agency as until now it has only dedicated to the real estate assets.
When it comes to Elliot, it has been the most active over the past 1.5 year, buying out loans from Bankia, Sabadell and Santander, among other banks. This fund has got its own platform in Spain, Gesif, with 230 employees.
Original article: Expansión (by Jorge Zuloaga)
Translation: AURA REE