Bankia’s Divestment Plan Comes To An End After 400+ Sales

20 April 2015 – Expansión

97% of the plan has been completed / In two years, the entity has transferred 200 investments, 130 real estate companies and 80 loan portfolios, amounting to more than €15,000 million.

Over the last two years, Bankia’s divestment team has had to go to the notary’s office every other day. The intense activity in terms of the sale of investments and loan portfolios has resulted in 400+ transactions since 2013 and the entity is now close to fulfilling the mandate imposed on it by Brussels.

In total, Bankia has transferred 200 financial and industrial investments; 130 real estate companies; and 80 problem loan portfolios, according to sources close to the entity.

Thus, Bankia has already exceeded the target it was set of divesting more than €50,000 million non-strategic assets – by the end of 2014, the figure was close to €59,000 million – but not all of the companies that were agreed as part of its rescue have been transferred. 3% of the plan agreed as part of the rescue still needs to be completed.

In this final sprint, which Bankia has until 2017 to complete, the entity will have to sell off dozens (tens) of real estate and industrial companies, many of which have filed for liquidation and have hardly any value.

Strong reputation

Over the last two years, the team at Bankia, led by the Director of Investments, Manuel Lagares, has earned the respect of foreign investors by closing the sale of portfolios worth €10,000 million and financial and industrial investments, worth €5,500 million.

Although Bankia was forced to make these divestments, the funds value the fact that it is one of the few entities that has not held back from sales processes and that it stands out as one of the best entities to have adapted to demand. Thus, overseas investors recognise that one of the first doors that they call at upon arriving in Spain is that of the bank chaired by José Ignacio Gorigolzarri (pictured above), as well as those of Sareb and the Frob.

Although Bankia has now almost completed its divestment plan, the entity continues to be very active in the market, as it seeks to improve its balance sheet and free up non-productive assets.

Some of the largest transactions conducted by the team at Bankia include the sales of its shares in: Iberdrola, which it sold for €1,500 million; Mapfre, for which it obtained €1,250 million; IAG, for which it earned €675 million; and Indra, which it transferred for €337 million.

Recently, the entity had decided one of the great real estate battles in recent years, which involved Realia, where it agreed to sell its 25% stake to Carlos Slim. It may also decide to transfer its stake in Globalvia soon, for which it is negotiating, together with FCC, with the Malaysian sovereign fund Khazanah Nasional Berhad.

Other transactions

Another transaction in the pipeline involves the sale of City National Bank of Florida, its North American subsidiary, which is pending authorisation by the Federal Reserve.

Together with its investments, Bankia has also transferred lines of business such as its asset manager, which was acquired by Cerberus; and Bankia Bolsa, which it transferred to GVC.

Original story: Expansión (by Jorge Zuloaga)

Translation: Carmel Drake

Bankia to Shed Stakes at Realia, Metrovacesa and Mapfre Still This Year

28/08/2014 – El Economista

Bankia accelerates its divestment plan. Sources from the entity assure that if the market circumstances permit, the bank will eagerly sell its majority stakes at Mapfre, Metrovacesa and Realia in 2014.

The sales process of Realia, where the bank holds a 24.95% stake, is already ongoing and offers are being reviewed. In case of Mapfre, Bankia saved only 1% out of the 15% holding inherited from Caja Madrid. Compromise with Brussels obliges it to sell the industrial portfolio before 2016.

Meanwhile, the entity can put up for sale 50% of Globalvia and transfer several minority stakes in small companies.

In total, the strategic plan of the group chaired by Jose Ignacio Goirigolzarri assumes selling a €50 billion worth of assets before the end of 2015.

The calculations do not take into account Bankias affiliate in the U.S.A., the City National Bank of Florida. The biggest revenues proceeded from the sale of the entity´s 4.94% share at Iberdrola (€1.53 billion), a 12% stake at Mapfre (€979.4 million) and a 12.09% one at IAG, merger of Iberia and British Airways (€675 million).

Apart from that, the bank got rid of stakes at: Indra (20.14%), NH Hoteles (12.06%), Inversis Banco (38.48%) making €615.8 million for all, as well as a 16.5% holding at Deoleo and Bankia Bolsa.

Original article: El Economista

Translation: AURA REE

Mapfre, Allianz & Plus Ultra Insure Houses of Sareb For €2.7 Mn

15/04/2014 – Expansion

Mapfre, Allianz and Plus Ultra have signed insurance contracts with Sareb that pledged to pay €2.7 million for them.

The insurance policies signed with the three companies will encompass 90.600 properties belonging to Spain´s bad bank. Their total value has been estimated at €11.4 billion.

Mapfre, Allianz and Plus Ultra share two types of coinsurance agreements: for material damage and civil responsability of Sareb. Plus Ultra leads in the first, while Mapfre in the second coinsurance.

Last year, the bad bank received property transfers from Bankia, Catalunya Banc, Liberbank, BMN, Ceiss, NCG, Valencia, Gallego and Caja3 and the assets had diverse insurances. To establish an order, Sareb named Willis to design the new contract signing operation.

The agreements will remain valid until the end of March 2015.

Mapfre and Plus Ultra, united in Catalana Occidente, are small shareholders of Sareb with 0.8% and 0.3% respectively. Allianz has no share in the bad bank´s investments.

 

 

Original article: Expansión (by Elisa del Pozo)

Translation: AURA REE