There will be substantial changes in the English Court – The Economist

The Spanish group confirmed it will enter its capital for the first time a foreign investor

The English Court struck a deal yesterday marking before and after for the company and involves the sale of 10% of the group to Qatar by 1,000 million euros.

The Spanish department store group confirmed yesterday that give entry into the capital for the first time a foreign investor, namely the Qatari royal family on behalf of Sheikh Hamad Bin Jassim Bin Jaber Al Thaniy, former prime minister of Qatar emirate.

Thus, Qatar will become one of the shareholders Spanish reference group to buy a 10% shareholding by about 1,000 million.

The Qatari royal family has been advised by Bank of America in this operation.

The deal values The English Court at 10,000 million euros, and will take place through the purchase of the portfolio company car, according to sources close point, which may strengthen the group’s capital and financial muscle.

Substantial changes

After this move, the Board of Directors of El Corte Ingles undergo some changes.

So, Qatari inversoionista will have a seat on the Council joining the nine directors It is formed, including the president of El Corte Ingles, Dimas Gimeno, appointed last September after the death of his uncle, Isidoro Alvarez.

The distribution group president stressed that the entry the new investor “will accompany us in our growth and expansion in an environment of cooperation.”

This inverter has carried out major operations which include those in the Deutsche Bank and KBL Luxembourg Bank .

It is noteworthy that also participated in the privatization of Heritage Oil.

“It gives us great satisfaction to our group incorporate a global investor as qualified,” he claimed Gimeno Dimas yesterday through a statement.

“This agreement is the result of a process that has matured and has completed a very successful partnership for both parties,” he added.

Negotiations to input the investor the Arab emirate in the capital and on the board of the distribution group, started under President Isidoro Alvarez, culminating with his successor.

Strategic Diversification

The transaction will enable El Corte Ingles, explain financial sources, boost the internationalization strategy of the group.

So far, the presence of the English Court outside Spain is focused in Portugal, where it has two department stores and, in recent years, has valued its entry into several countries.

Together with internationalization, the entry of Al Thani as a shareholder will, according to the sources cited financial, face the decline of one of the three sections in which the debt was restructured El Corte Ingles and currently totaling 3,500 million euros.

In particular, the section B representing most of its financial debt, amounting to 2.698 million euros.

Both the Council and the shareholders of the company remain in the hands the descendant of its founder family.

Currently, the Ramon Areces Foundation, chaired by right-considered Lasaga Florencio Isidoro Alvarez is the largest shareholder of the distribution company, with more than 35% of capital.

From behind, Alvarez’s two daughters, Marta and Cristina Alvarez Guil are placed with a 7.5% stake each.

In its fiscal year 2013, El Corte Ingles revenues of 14.292 million, 1.8% less, and a net attributable profit of 172.36 million, 5.6% more.

fondos@eleconomista.com.mx