LAST UPDATE: 15:31
Only two offers lower than the estimated price of 700 million euros and non-binding for the largest portfolio of 97,000 loans outside Herakles from 13 banks in liquidation, amounting to 5.2 billion euros.
The board of PQH, which had taken over as special liquidator the management and sale of the largest loan portfolio of 5.2 billion euros, decided that the tender for the securitization ended in vain.
It is noted that on July 15 the phase of binding offers was completed and the decision was taken today. However, based on the original schedule for submission of initial bids and subsequent bindings, a delay of 8 months was observed due to extensions.
It is about the sale of loans under the name “Ariadni”, which includes 97,000 loans from 13 banks under liquidation. The book value of the loans amounts to 5.2 billion euros, while the total claims (including interest, etc.) amount to 14 billion euros. 60% of the portfolio includes business loans while most of it is covered by collateral.
According to liquidator PQH’s planning, non-binding offers should have been submitted by January 18, 2022 and binding offers by May. This would then be followed by an evaluation and signature of the transaction. Finally, on July 15, the Board of Directors of PQH considered that the two offers submitted were non-binding, while they were considerably lower than the price, which had been calculated at around 700 million euros.
The size of the transaction (Ariadne) had gathered the interest of management companies and investment funds. Suffice it to say that in total Morgan Stanley sent the information to 30 investors and 13 agreed.
But geopolitical and economic conditions that worsened after February reduced investors’ risk appetite. Thus, maximum flexibility was given, with extensions and other means, to no avail.
According to a PQH briefing to reporters, it will continue to manage and find a solution to achieve optimal utilization, either by repeating the tender or creating smaller portfolios, or considering other avenues.
It is recalled that PQH has successfully completed and undertaken other large transactions, such as that of the Postal Savings Bank or the “Ailos” portfolio, which had preceded it, with a book value of 1.075 billion euros, to Intrum in May 2020.
Source: Capital
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