The auction by the Degroof subsidiary Petercam has a capping, the Spanish venture capital fund Gala Capital, through its financial brand Beka Finance. At the beginning of the sale process, the fund studied in depth whether to formally apply as a possible buyer, although it rejected the idea due to the high price that, in its opinion, was requested by the entity. However, the coronavirus crisis and the sharp decline in the markets have inevitably caused the auction to have to drop in price, even the possibility of throwing it back has been considered in the event that the current offers from Morabanc, Singular Bank and Andbank are insufficient for the Belgians. Therefore, the bottom could take the cat to the water in a last minute movement.
May 23, 2020
The outcome of the auction is being chaotic. As ‘La Vanguardia’ published, Andbank would have been the winner and would already be finalizing the purchase, in the drafting phase of contracts. However, sources close to the operation assure Bolsamania that the bank of Andorran origin you have not yet received any notification from Arcano, who is the one who has the sale mandate, that he has been victorious. In fact, these sources point out that the rest of the entities in dispute -Morabanc, Javier Marín and Warburg Pincus through Singular Bank and Beka Finance itself- They still keep alive their hopes of taking over the Belgian private bank’s subsidiary. They all believe that there is a real chance that the end will turn upside down. In fact, some have come to propose in recent weeks the keep only part of your business instead of the whole to save the core part of the operation.
The trial offers that were made in the first phase ranged between 25 and 30 million euros, but now they are below 20 million. This calculation, validated by the sources consulted, is in line with the average loss of the bags since the Covid-19 increased, which have fallen by around 30%. At the end of last year, Bank Degroof Petercam Spain had 1,300 million euros in assets under management and 60 private bankers, although it has more than five years dragging losses.
A priori, the favorites were Morabanc and Singular Bank, after Banco Alcalá withdraw from the bid. Andorran Morabanc has recently opened a securities agency in Barcelona to do private banking in Spain and wants to expand to the main squares in the country. In this sense, Degroof Petercam, whose headquarters are in Barcelona, also has offices in Madrid, Valencia and Bilbao, although a large part of its business is focused on Catalonia and Levante, inheritance from the former Privat Bank.
For his part, Singular Bank’s strength lies in the fact that it has no presence in Barcelona, one of the places where Marín is in the hurry to enter, being the second largest focus of wealth after Madrid, and in the financial muscle of its American partner , the venture capital Warburg Pincus.
LAST MINUTE IRRUPTIONS
In the case of Andbank, financial sources familiar with the process testified to this newspaper that its offer was “the lowest of all”, after having reached a acquisition agreement with Esfera Capital Gestión last March after the intervention by the CNMV of its parent company, the securities agency Esfera Capital. Despite this, the reconfiguration of the other offers after the Covid-19 may have made it more competitive.
The breaking of Beka Finance at the last minute, which welcomes the current valuation, coincides with the announcement of the launch of its new private banking. He has signed David Azcona, former Caja España Fondos and Morabanc Asset Management; it is in the approval phase by the CNMV of a securities agency and its project includes the incorporation of senior private bankers. However, although various financial sources confirm their re-engagement in the process, sources in the venture capital environment discard their participation.