his way, the public company depending on the Ministry of Economy and Finance, would return to the initial Schedule that had set out its Initial Public Offering (IPO), with the aim to debut before general elections.
However, banks coordinating the operation subdue the compliance of this calendar to the authorization of all the pertinent procedures and that the National Stock Market Commission approves the IPO.
The society headed by Aurelio Martínez had completed, facing its IPO, the banking syndicate, both for the institutional tranche and the minority tranche, in charge of what will be the largest privatization in the Spanish history, which could bring the state incomes of around 7,000 to 8,000 million euros.
Santander, BBVA, JP Morgan, Goldman Sachs, UBS and Credit Suisse participate –under Rotschild direction- as global coordinators of this operation. Entities in charge of the institutional tranche are Citibank, Deutsche Bank and Morgan Stanley, while Bankia and Caixabank will be in charge of this phase of the minority tranche. Besides, insurance companies of the minority tranche are Banesto, as well as Banco Popular, Sabadell, Bankinter and Deutsche Bank.
Analysts will study the operation in the first weeks of September, and, by the end of the month or beginnings of October, it will start the placement process among institutional investors in order to set the price of the IPO.
The patrimonial value of the entity is around 21,000 million euros, although there are some assets that have not been included in the valuation, such as new games, the plan of internationalization or reduction of costs. This partial privatization, the biggest carried out in Spain so far and the second in Europe, will have a minority tranche of 60%.
Income obtained from privatization will bring more resource margin to Public Treasury and will allow to perform less issue debts in the last part of the year.
LAE puts at disposal of the citizens publicly-owned games and bets, both at a national and international level, and reverts its benefits in the Public Treasury through General State Budgets, among other ways.
LAE net result exceded 2,994 million euros in the exercise of 2009, which supposes an increment of 3.47% compared to the previous year. The entity allocated 2,9 billion euros to the Public Treasury, a 0.92% more with regards to 2008.