The Government, through Froba minimum part of Caixabank sold last December. It detached from about a tenth of its participation in the largest bank in Spain by volume of assets since the Executive does not want to exceed the … Threshold of 18.1% of the entity, something that will happen due to the repurchases of shares that the financial group has launched these years.
On its website and in the last corporate presentation that the FROB made public, which is the holder of CaixaBank’s actions on behalf of the State, it is detailed that public participation in the bank is in the 18.1%environment. A level that reached in November for the last repurchase of actions of the entity. Thus, before the end of 2024 the Spanish resolution authority executed a minimum sale since its percentage at the end of the year was lower.
Thus it follows from the annual corporate governance report that CaixaBank has just made public, in which it is detailed that, as of December 31, 2024, the FROB had 18.029% of the capital, that is, less than what the authority of Resolution had communicated shortly before. And the information made public by the bank has been facilitated by the FROB. The sale executed would be about a tenth of the share capital and could be around an income of about 40-50 million euros for public coffers, in the absence of official confirmation and according to the price of then of CaixaBank’s shares.
For this work, the FROB hired an intermediary, Bank of America. An investment bank to intermediate this minimum sale of shares, whose contract with the public authority is unknown.
When CaixaBank absorbed Bankia, the State stayed with 16% of the resulting entity. But that number has been reviewed upwards because of the repurchases of actions that the bank has done -thus that the rest of the sector -which are a way beyond the traditional dividend of remunerating the shareholders. “A repurchase of shares is a financial operation in which a company acquires its own market shares,” says the own CaixaBank In his blog. The objective is to reduce the social capital of the group, which increases the percentage of ownership of each shareholder and also that the benefit is increased by each one.
The Catalan bank has executed several operations of this type in the last two years, reducing its share capital. That has caused the State to have 16% to 18.1%. And, as announced by the Minister of Economy, Carlos bodythe government did not want to raise more than that percentage, which already mentioned that there would be a small sale of shares.
First sale since 2017
Thus, this is the first sales operation that the State does this participation since 2017. It was in that year when the last alienation occurred, under the government of Mariano Rajoy. Then 7% of Bankia for about 818 million euros. It is also the first sale undertaken since participation went to CaixaBank.
Facing the next months, since the bank has underway and plans to make more repurchases, the FROB must be expected to go back to the market to sell a minimum part of its shares if it keeps its intention unchanged not to exceed 18, 1% of the capital.
In any case, as the Executive has transferred on several occasions, right now it is not on the table to make a large sale of shares or a total disinversion in Caixabank since the government still sees the action of the financial entity, what that would result in a greater recovery of the rescue that was made to Bankia in 2012.
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