Nozar, the investment vehicle of the Nozaleda family, is selling a 7% stake in Colonial to the banks of the troubled Spanish company. Nozar, which has a 12.25% stake in Colonial, is selling the assets to cut down a EUR 460 mln of debt it holds with Natixis, RBS, Gaesco, Caixa Galicia, and JP Morgan. The Nozaleda's are retaining a 5% stake in Colonial, Europa Press reported on Friday.
Nozar, the investment vehicle of the Nozaleda family, is selling a 7% stake in Colonial to the banks of the troubled Spanish company. Nozar, which has a 12.25% stake in Colonial, is selling the assets to cut down a EUR 460 mln of debt it holds with Natixis, RBS, Gaesco, Caixa Galicia, and JP Morgan. The Nozaleda's are retaining a 5% stake in Colonial, Europa Press reported on Friday.
Luis Portillo, Colonial's former chairman and largest shareholder with a 34% stake, is said to be mulling the same move. He is reportedly in talks with banks Banco Popular and La Caixa to sell its entire stake worth some EUR1.4bn.
Earlier this week, Banco Popular and La Caixa announced they are considering the possibility of buying into Colonial, by freeing up and taking control of the shares Portillo deposited as a guarantee for loans granted to him by the two banks.
Colonial has been the focus of takeover speculation after its shares plunged 51% last month in the face of declining property values and banks' disinclination to lend in the current market crisis. France's Gecina, US GE and Dubai fund ICD have approached the company since the end of 2007. Today the company shares were trading at less than EUR 1 per share (EUR 0.93 per share), which compares to more than EUR 4 per share in June 2007.
