Venezuelan bank Banesco has won the bid for 88.33% of Spain's rescued bank NCG Banco, Spanish bank restructuring fund FROB said on Wednesday. Banesco beat out five other rivals with an offer of €1 billion ($1.4 billion).
According to a report by Reuters, six binding offers had been made for NCG Banco. FROB said in a statement that the top offer was €200 million above the second highest bidder, thus avoided any need for a second bidding phase.
Some 40% of the offer would be paid on the formalization of the sale. The remaining 60% would be paid in tranches through 2018, the report said.
The acquisition, which includes two non-performing loan portfolios, came without guarantees of more public funds or any asset protection scheme from Spain's government to shield the bank against future losses. The deal will be completed once regulatory approval is given, Reuters said.
NCG Banco took €9 billion in rescue funds from Spain and Europe and returned to profit in the year to September, the report stated.
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