The entity indicates to the CNMV that it is still preparing its capital increase or a “corporate transaction”
Banco Popular has issued a statement to the securities regulator, the National Securities Market Commission, in which it denies that it is experiencing liquidity problems. The entity has explained that it has “different advisers” for its already announced plans for a capital increase or “a corporate operation”. But he denies that it is to make an urgent sale. The company has lost 6.64% of its value on Thursday, the biggest drop of the day in the Ibex 35.
“In relation to the news published today in a digital medium, Banco Popular Español, SA categorically denies that it has ordered the urgent sale of the bank.” It denies that there is a risk of bankruptcy. Other financial institutions the imminent need for funds in the face of a massive leak of deposits, “the statement said.
The communication comes after El Confidencial published this afternoon that it had hired JPMorgan and Lazard to carry out an urgent sale “because of the risk of bankruptcy” and that it tried to avoid bankruptcy before “a massive leak of deposits from customers “. “The article therefore disseminates false premises and data,” the entity tells the CNMV.
“At the end of the quarter, as reported last week, the bank’s equity was 10.777 billion euros and the total capital ratio stood at 11.91%, above regulatory requirements. That there is data from the Spanish Banking Association that the bank lost 6,000 million euros of deposits in January. Nor is it true that the Bank has abandoned the processes of divestment of non-strategic assets initiated, which follow its Normal course, “he says.
On the sale to another entity, he explains that the bank’s strategy, “communicated by its president at the Ordinary General Shareholders’ Meeting on April 10”, remains “unchanged”, and the bank is working on its development, “which Includes the potential realization of a capital increase or a corporate operation.To that end, the Bank has several specialized advisors who will support it in the development of said strategy.The whole organization of Banco Popular continues to develop its banking activity within the usual framework “, Add. The Bank asserts that it reserves the right to take appropriate legal action.
Contradictory rumors in the market
However, according to market sources, Saracho has had talks with different bank presidents who have raised the possibility of selling the bank to them. This Thursday the entity fell 6.64% on the Stock Exchange, although in the last five sessions accumulated a rise of 21%, due to rumors of sale.
Saracho has been chairman since January, but says he needs to be able to get the money he needs, but he says he needs to be able to pay for it. Until the summer to realize the numbers.It is too long for an entity that is in the eye of the hurricane. ” These sources also consider it contradictory for the president to hold talks with competitors “if he does not know his true hole. How can you negotiate if you can not determine how much an entity is worth?” They conclude.