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Spanish FROB receives six bids for NCG Banco

The Fund for Orderly Bank Restructuring (FROB), Spain's bank restructuring fund, has reportedly received six binding offers for the acquisition of 88.33% stake in nationalized lender NCG Banco.


The possible suitors included US financial services firm Guggenheim Partners, JC Flowers, the Banesco banking group, Spanish bank Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA) and Caixabank.

Financial terms of the placed bids have not been disclosed. People familiar with the matter were quoted by the Financial Times as saying that the Spanish government could lose nearly €9bn of taxpayers’ money on the sale of the nationalized savings bank.

Formed through an integration of regional savings banks CaixaNova and CaixaGalicia in 2010, NCG Banco currently has €57bn of assets. The bank serves nearly 2 million clients, operating through 550 offices with the help 4,500 staff.

The bank was put for sale in November 2013 and asked the potential bidders to submit their proposal latest by 13 December.

The FROB said it will look into the proposal and if the highest bid does not surpass the second best offer by €200m, and by 50%, it would initiate a second bidding phase.

Spain has agreed to divest many nationalized lenders by 2017, as part of a restructuring agreement with with EU officials.


Image: FROB receives six bids for NCG Banco. Photo courtesy of adamr/