Bloomberg News

Spain’s Loterias Said to Hire Four Banks for $10 Billion IPO

July 04, 2011

July 4 (Bloomberg) -- Spain’s national lottery operator hired four banks for an initial public offering that may raise as much as 7 billion euros ($10 billion), according to two people with knowledge of the transaction.

Sociedad Estatal Loterias y Apuestas del Estado mandated Credit Suisse AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. and UBS AG for the sale of a 30 percent stake, valuing the company at as much as 21 billion euros, according to the people, who declined to be named because the information is private. A listing is expected to come as early as November, said the people. If successful, it would be Spain’s biggest IPO ever, according to data compiled by Bloomberg.

Europe’s sovereign debt crisis from Greece to Portugal has reduced investors’ appetite for IPOs in the region. In western Europe, at least 21 IPOs were delayed or pulled this year, the most since 2006, Bloomberg data show. Spain has had no successful IPOs this year, according to the data.

“There isn’t anything official yet,” said Juan Serrano, Madrid-based spokesman for Loterias. An announcement could be expected in the next few days, he said.

Telefonica SA, Spain’s largest phone company, last month shelved a share sale of its Atento Inversiones & Teleservicios SAU unit, which was seeking as much as 745 million euros.

Meanwhile, Spanish banks are seeking to strengthen capital levels by selling shares. Bankia, the lender formed by a merger of seven savings banks led by Caja Madrid, is seeking as much as 4.2 billion euros while Banca Civica, formed from the combination of another four savings banks, aims to raise as much as 844 million euros. Both are scheduled to start trading on July 20 in Madrid.

Expansion reported that Loterias had hired the banks on July 2.

--Editors: Sara Marley, Jerrold Colten

To contact the reporters on this story: Zijing Wu in London at zwu17@bloomberg.net; Manuel Baigorri in Madrid at mbaigorri@bloomberg.net

To contact the editors responsible for this story: Jennifer Sondag at jsondag@bloomberg.net; Angela Cullen at acullen8@bloomberg.net


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