The 3rd largest bank of Spain, CaixaBank SA is studying sale of 10% stake in Grupo Financiero Inbursa SAB, a financial services company from Mexico, which is under control of renowned billionaire Carlos Slim. CaixaBank currently holds 20% stake at Inbursa and according to officials, selling half of stake will not be affecting the commitments of this bank to the lender or the main shareholders either. The lender has made a regulatory filing on this regard as well. As far as Inbursa’s market capitalization depending on yesterday’s close is concerned, a 10% stake will probably be worth around $1.6 billion.
After the property crash in Spain, several lenders such as Banco Bilbao Vizcaya Argentaria SA and Banco Santander SA sold assets in the Latin American region for replenishing the capital which was depleted. Whereas Banco Bilbao sold its Mexican Pension Fund business, Banco Santander sold its stake in Grupo Financiero Santander Mexico. CaixaBank with this sale will join those lenders. The lender is currently aiming to bolster the financial strength of the same at it is looking at a core capital ratio of more than 8% by end of 2013. It will take all the adjustments required under the Basel III rules into account.
According to the analyst of Keefe, Bruyette & Woods Ltd., Antonio Ramirez, Inbursa is one of those few of CaixaBank’s investments through which the lender can realize clear gains. Hence, when it was about selling assets, Inbursa had to be one of the obvious candidates for CaixaBank. Ramirez added that in the recent years, the Mexican bank valuations have performed pretty well and he rated the lender as market perform.
Inbursa shares experienced a decline of 2.1% and each share currently costs 28.75 Mexican Pesos. Through yesterday, the shares have experienced a decline of 25% in 2013. The benchmark IPC index, on the other hand, experienced a tumble of 8.2% in 2013.
In 2008, La Caixa Group bought 20% stake at Inbursa for a price of 1.5 billion Euros. This was done in an attempt to expand in the Americas. After the deal, Inbursa shares have jumped ahead by 66% in the 5 years. CaixaBank shares, on the other hand, have jumped up by 1.2% on today and each share costs 2.76 Euros now. The total market capitalization of the lender is now at 12.8 billion Euros.