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.
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