5 February 2018 – Expansión
The Spanish Fund for Orderly Banking Restructuring (FROB) has engaged the financial consultancy firm Intermoney Valora to carry out a “valuation service for certain assets in the framework of the process to wind up Catalunya Banc (CX)”.
Sources familiar with the process indicate that this project stems from the process to privatise the former Catalan savings bank, which was nationalised by the FROB in 2012. In accordance with the design of the divestment at the time, the banking business was transferred in its entirety to BBVA, whilst the real estate business (known as the Hercules portfolio) was acquired by the fund Blackstone.
Those same sources indicate that at the time, a small percentage of the assets that should have been transferred to Blackstone, remained under the umbrella of BBVA for technical reasons and could not be transferred. “That has generated what is known as compensable damage, which was anticipated for in the sales contract and, therefore, had been provisioned”, they add.
The role of Intermoney Valora will be to estimate the economic value today of that small percentage of assets pending transfer to Blackstone, so that the indemnities can be calculated.
According to details specified on the Frob’s public contracting page, Intermoney (which competed with five other firms) will receive €130,000 for this assignment and will have two months (extendable for up to one more) to carry out the work.
Last week, the President of BBVA, Francisco González, admitted that he would not have bought CX today. “We are delighted to have purchased savings banks but that was five years ago. Would we buy CX today? Probably not”, he said.
Original story: Expansión (by N. Sarriés)
Translation: Carmel Drake