January 19, 2021

Bankia gives an oxygen ball to Banca March in the sale of Inversis | Markets

Bankia gives an oxygen ball to Banca March in the sale of Inversis | Markets

A breath of air for Banca March in the sale of Inversis, the platform specialized in providing investment services to the wholesale segment, fund sale, outsourcing and depositaría.Bankia has indirectly given an oxygen ball to cancel sine die sale of your deposit of investment funds and pension plans, with assets of more than 23,000 million. One of the keys is that the Bankia subcustodiate is now in Inversis.

The entity chaired by José Ignacio Goirigolzarri has canceled this operation, which was probed last year. Had it been executed, it would have degraded the value of Inversis. It is usually the depositary that decides who is the subcustodian. Thus, financial sources point out that if this Bankia business had ended up in the hands of Cecabank or BNP Paribas, they would have withdrawn a substantial part of their business from Inversis. Bankia also uses the Inversis technology platform for the purchase of international investment funds. Financial sources indicate that, although this service does not represent a large part of its income, "the reason for being of the Inversis supermarket is Bankia" and that without this client it would suffer a detriment in the eyes of the market.

All this would result in the price that Banca March would bag by Inversis. The market came to quantify the entity in about 250 million but, the price will eventually be lower.

It has been precisely the divergences in the valuation that have shaken the bid of who from the beginning emerged as a great favorite in the process, BME. Financial sources indicate that their offer was below 200 million, which in principle has left the way clear to Cecabank and Allfunds, whose offers are also on the downside It remains to elucidate what role Värde and Centerbridge will play, two international funds who were interested in the process and who will also be able to play their cards. Everis finally decided not to attend.

Definitive offers

The reception of preliminary offers closed in January, as published Five days. Now it is the turn of those shortlisted by March to adjust their bid and submit a binding offer. To present the real offers have until the end of this month. Financial sources even point out the possibility that the sale is deserted.

Banca March's objective is not to divest itself of the entire Inversis capital and retain a small share, although it would not have decided the specific percentage. To bring the operation to a successful conclusion, the Marchs have hired Banca March's own M & A area and Bank of America Merrill Lynch to search for a partner in Inversis.

The calendar finally happens because, if the operation is finally carried out, the winner is announced during this month of February. The shareholder change will be the last in a story that started in 2001, when the founders of Inversis -between which were Bankia, Sabadell, Indra, Telefónica or El Corte Inglés- agreed to sell to Andorran private banking after a process in the who competed more than 80 investors.

Banca March, then owner of 5%, exercised his right to bid and stayed with 100% for 217 million.

In parallel, Banca March transferred its retail business to Andbank. However, both parties signed an agreement whereby Inversis retained until 2023 the financial services related to the operation of securities and banking services. At the time it sold 48.96% of the capital to the Portuguese holding company Orey Antunes for about 21.74 million euros, which it repurchased a few months after the competition authorities gave their approval to the operation.

A succulent business of the fourth manager

Although as a subcustodian, Inversis takes part of the business in funds of the fourth Spanish manager. Bankia manages vehicles with an equity of 16,857 million euros, according to Inverco data at the end of 2018. It received a strong boost after the bank chaired by José Ignacio Goirigolzarri decided last year to withdraw to Trea AM the management of the funds of BMN after completing the merger with this bank. Trea was awarded the manager of Banco Madrid after the liquidation of this entity and whose most substantial business was precisely BMN funds. As Bankia withdrew the management of these vehicles ahead of time, the bank paid compensation to Trea, which has 2,057 million euros of assets in funds.


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