Banks to boost ENCE stakes

PPI, Dec 2002

Two members of the banking consortium that holds 24.99% of Ence aim to fatten up their share in the company. Caixa Galicia, Banco Zaragozano and Bankinter clubbed together $112.5 million to buy the stake from the Spanish state holding company, SEPI, in June last year.

Caixa Galicia and Banco Zaragozano have informed the stock market watchdog, the Comisi6n Nacional del Mercado de Valores (CNMV), that they plan to launch a Euro 37 million offer to buy an additional 10% of Ence's stock for Euro 14.50/share.

Ence's stock last traded at Euro 13.25/share on October 30, before CNMV put a freeze on dealing in the company. Shareholders have one month to tender their stock once the offer is launched.

Caixa Galicia owns an 11.99% share of Ence, while Banco Zaragozano and Bankinter each hold 6.5%. Caixa Galicia's stake is set to swell to 18.5% and Banco Zaragozano should hold 10% of Ence's share capital once the offer is complete.