December 14, 2018 / 7:33 AM / a year ago

UPDATE 1-Intrum buys Sabadell's real estate servicer to boost Spain presence

(Adds CEO comment, details of stake sale)

Dec 14 (Reuters) - Sweden’s Intrum said on Friday it will buy Banco Sabadell’s real estate servicer Solvia for an enterprise value of about 300 million euros ($340.62 million), aimed at strengthening its position in the Spanish market.

“With this acquisition, combined with our existing Aktua real estate servicing unit, we will consolidate our position in the Spanish real estate market,” Intrum’s Chief Executive Mikael Ericson said.

With this deal, Intrum will become one of the leading three players in Spain, Ericson added.

Intrum will acquire 80 percent of the shares in Solvia, while Banco Sabadell will retain the remainder 20 percent, Intrum said.

The acquisition supports Intrum’s long-term 2020 targets, delivers strong cash flows and will add to its earnings per share, the company said.

The stake price may increase by up to 40 million euros, depending on certain conditions, Sabadell said in a separate statement.

Sabadell will generate a capital gain of 138 million euros and the deal will have a positive impact of 15 basis points on its Common Equity Tier 1 (fully loaded) capital ratio, it said.

Solvia manages assets worth over 21 billion euros, Intrum said.

$1 = 0.8807 euros Reporting by Marta Frackowiak in Gdynia, Editing by Sherry Jacob-Phillips

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