DoBank SpA is looking to acquire the entire share capital of Spanish nonperforming loan service provider Altamira Asset Management in a deal that has been valued at €412 million.
The lender said Dec. 31 that it has already agreed to acquire 85% of Altamira Asset management SA from Altamira Asset Management Holdings SL, a holding company owned by entities affiliated with funds managed by Apollo Global Management LLC, Canada Pension Plan Investment Board and Abu Dhabi Investment Authority. Furthermore, doBank could acquire the remaining 15% from Banco Santander SA if the Spanish banking group decides to exercise its tag-along right before the deal is closed.
Altamira is an independent service provider of NPLs and real estate assets in southern Europe, with AUM of about €55 billion in Spain, Cyprus, Portugal and Greece and more than 1,000 employees. It is expected to report about €255 million in revenues and an EBITDA of around €95 million for 2018.
The deal would allow doBank to create a credit management operator and real estate service provider for banks and investors in Europe, with AUM of €140 billion manned by a more than 2,200 staff. The bank is also looking at a possible co-investment at deal completion by one of the current indirect shareholders of Altamira.
Subject to certain conditions, the deal is expected to close by May, following the completion of doBank's new corporate structure. Aside from the consideration, the deal also entails an earn-out for the selling shareholders of as much as €48 million. The consideration is subject to adjustments at closing.
DoBank said it will finance the deal through its own liquidity and a five-year bank credit line of up to €450 million, which will also be used to refinance Altamira's existing debt. The credit line carries a coupon equivalent to the six-month Euro interbank offered rate plus an initial 250-basis-point spread.
Mediobanca and UBS Investment Bank are serving as financial advisers to doBank, while Ashurst and Oliver Wyman are acting as legal and strategic advisers, respectively. Additionally, PwC is advising the bank over due diligence, tax, labor law and ICT and operations on the deal.