Tag: Board members

Sareb Sold 13,796 Properties Between Jan & Sept, Up By 55% YoY

15 November 2017 – Expansión

Yesterday, the bad bank reported updated figures for its commercial business. Between January and September, it sold 13,796 properties, up by 55% compared to the same period last year, boosted by commercial campaigns and the change in the real estate cycle. These figures imply a drop in the growth rate compared to the previous quarter, most likely influenced by the lower activity typically seen in August. Note, the data relates to the first 9 months of the year until 30 September and therefore does not reflect the suspension of real estate activity in Cataluña since that date.

The sale of residential properties grew by 50% YoY, whilst the sale of warehouses, retail premises, hotels and offices rose by 99%. The bad bank also sold 710 plots of land, up by 31% compared to the previous year.

Sareb is also involved in property development activity. This year, the company has sold eleven developments that it received when they were unfinished.

The bad bank’s total revenues grew by 3.6% during the 9 months to September – after increasing by 21% during the first 6 months of the year – to €2,394 million.

Sareb has never made any money. Its cumulative losses amount to €781 million. Since its creation, it has reduced its toxic asset balance by 23% and has repaid 19% of the debt it issued initially.

Renewal of the board

Sareb is going to subject the renewal of its Board of Directors to the General Shareholders Meeting for approval. The former minister and former President of Endesa, Rodolfo Martín Villa, who represents the Frob, will depart for reasons of age. He will be substituted by Eduardo Aguilar, former CEO of Seguros. The representative of Popular will resign from the board to make way for Jaime Rodríguez Andrade, Director General of Problem assets, restructurings and corporate investments at Santander. And the representatives of CaixaBank will be replaced: Jorge Mondéjar and Antonio Cayuela will take over from José Ramón Montserrat and Antonio Massanell.

Original story: Expansión

Translation: Carmel Drake

Slim Launches Voluntary Takeover For 100% Of Realia

28 January 2016 – Expansión

The Mexican multi-millionaire Carlos Slim has launched a takeover bid for 100% of the real estate company Realia, in which he already holds a 30.4% stake, at a price of €0.80 per share. The voluntary offer represents a premium of 17.6% with respect to the trading value yesterday, when the share price remained stable (at €0.68/share).

In March last year, after acquiring Bankia’s stake in the real estate company, the Mexican businessman, who is also the majority shareholder of FCC, in which he holds a 27.4% stake, launched a takeover for 100% of the real estate company Realia, at a price of €0.58 per share, for which the Socimi Hispania also made a bid. In turn, FCC holds a 36.9% stake in Realia.

On this occasion, Slim, through his company Inmobiliaria Carso, has decided to formulate his offer on the understanding that a strategic plan will have to be prepared for the Realia group, in order to clean up the company and turn it into a business with a stable level of recurring income, that is balanced with its debt, according to a report submitted to Spain’s National Securities Market Commission (CNMV) yesterday.

On the other hand, by launching a voluntary takeover in this way, Slim avoids the need for the CNMV to set an equitable price, which in all probability could be higher. Carso has been advised by the law firm Ontier.

The Mexican businessman considers, in addition, that by formulating a takeover at an equitable price, a new window of liquidity will be opened for the minority shareholders, which will allow them to take a decision as to whether to continue in the company or sell their stakes. The operation is subject to approval by the CNMV.

On 8 February 2015, the Mexican multi-millionaire advised the CNMV that his stake in Realia exceeded 30%, following the subscription of shares under the framework of the capital increase, which the real estate company launched for €87 million.

At the time, he announced that he was going to request a waiver from the obligation to launch a takeover for 100% of the company, although in the end, he has decided to submit a voluntary takeover bid.

Nevertheless, and despite having exceeded the 30% stake in the company’s share capital, which requires the launch of a takeover for 100% of the company, Slim believes that the criteria for the aforementioned waiver apply in this case.

He says that he has not appointed the majority of the Board members or of the Executive Committee, he has not exercised any of the voting rights that apply to holders of stakes of more than 30% in Realia. Furthermore, none of the events established in Article 5 of the takeover law that would attribute additional voting rights in Realia to his company, have taken place, besides those already mentioned.

The Mexican businessman ranked in second place on the Forbes list of the richest people in the world.

Original story: Expansión (by M. Anglés)

Translation: Carmel Drake