ING Spain Poised to Acquire 40% Stake in Spanish Private Bank Singular
ING Spain's Strategic Move into Spanish Private Banking
MADRID, July 1 (Reuters) - ING Spain is close to finalising the purchase of a 40% stake in Singular Bank as part of its plans to enter the Spanish private banking sector, a person with knowledge of the matter said on Wednesday.
Details of the Potential Deal
The deal, first reported by Spanish newspaper Expansion, is still not closed and subject to final details, the person said, without providing financial details.
Stakeholders and Comments
Singular, in which U.S. fund Warburg Pincus owns a 93% stake, was not immediately available for comment. ING Spain declined to comment.
Competing Bidders and Valuation
Italy's Intesa Sanpaolo had also been among the parties interested in Singular, sources told Reuters in May, confirming an earlier Financial Times report which said Warburg was seeking €300 million ($342 million) for its entire stake.
Intesa Sanpaolo's Shift in Focus
Since then, however, Intesa has unveiled a €30.6 billion unsolicited cash-and-share bid to buy domestic rival Monte dei Paschi di Siena and a person close to the matter told Reuters it was fully focused on that.
Singular Bank's Background and Management
Singular's management, which owns 7% of the company and is led by former Santander CEO Javier Marin, was running the sale process and seeking a new majority investor, a source had told Reuters.
Recent Acquisitions and Assets Under Management
Singular, which bought UBS' Spanish wealth management business in 2021, has around €18 billion under management as of the first quarter.
Consortium Structure and Future Ownership
ING Spain will become part of a consortium of investors in which no single shareholder will hold more than 50% and which will also include Marin, a Mexican bank and several family offices, with ING Spain holding the largest stake, Expansion said.
Warburg Pincus' Exit
Should this transaction go ahead, Warburg Pincus will exit the Spanish bank entirely, Expansion added.
($1 = 0.8771 euros)
(Reporting by Jesús Aguado in Madrid; additional reporting by Valentina Za in Miland; Editing by Alexander Smith)
