July 21, 2017 / 9:47 AM / a year ago

Santander seeks bids by July 24 for Popular property assets - sources

LONDON/MADRID (Reuters) - Spain’s Banco Santander (SAN.MC) is seeking bids by next Monday for some 30 billion euros (26.84 billion pounds) of property assets from Banco Popular, three sources familiar with the matter said.

A woman uses a Santander's cash dispenser (ATM) next to a Banco Popular office as a couple walks past in Barcelona, Spain June 7, 2017. REUTERS/Albert Gea

Santander, the euro zone’s biggest bank by market value, launched the sale on June 30 and the tight deadline is a sign the lender wants to quickly draw a line under potential risks linked to the takeover of Banco Popular on June 7.

It had initially set itself a 3 year deadline to sell all of Popular’s bad property assets, one of the factors that brought down the 90-year-old lender.

The sources said private equity funds Blackstone, LoneStar and Apollo were invited to submit binding bids for a 51 percent stake in the portfolio, which includes repossessed assets worth 18 billion euros and 12 billion euros in non-performing loans.

With a coverage ratio for losses of 69 percent and a net value of 9.2 billion euros, offers are expected in the ball park of 5 billion euros, although the final price will not be set until a comprehensive due diligence has been completed, the sources said.

Banco Santander, Blackstone, LoneStar and Apollo declined to comment.

Additional reporting By Pamela Barbaglia and Steve Slater in London; Editing by Julien Toyer

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below