Spain regains €136 million with first steps of Bankia’s privatisation

The Spanish government has started Bankia’s disinvestment with the sale of a first stake of 7.5%. The FROB, which is the tool created in 2009 to orderly restructure the country’s banking system sold that participation to institutional investors by means of an accelerated book building process. Analysts in Madrid  expected the price of the operation would be around 1.50-1.55 euros per share, which meant a discount near 5%, very usual in this kind of financial moves. The final price has suited estimated figures: 1.51 per share totaling €1,304 million, and a 4.4% discount.  Therefore, the FROB would reduce its position in Bankia, though still keeping a 60.9% stake.

At the same time, the operation has brought BFA (main Bankia’s shareholder holding a 68.4% stake, of which the FROB owns 100%) consolidated net gains of 301 million of euros. Which is more important, it has allowed Spain to start taking back some of funds injected for the entity’s bailout, thus earning €136 million compared to the price it bought at.

In Spain’s Minister of Economy Luis de Guindos’ opinion, the sale of 7.5% of Bankia is “a sign” of change in the perception and reality of the country’s financial sector.

This disinvestment of Bankia 7,5% stake comprises the selling of 864 million of shares and is being conducted by Goldman Sachs. At midday, the Spanish entity’s was losing 4.75% in Madrid Stock Exchange.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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