Spain, in crisis, privatizes lotteries.
The sale could raise up to 7,5 billion euros.
Spain's Finance Ministry has chosen four investment banks to coordinate the privatization of the Spanish lottery company, Sociedad Estatal de Loterias y Apuestas del Estado, people familiar with the negotiations said on Sunday.
JPMorgan Chase, Goldman Sachs, UBS and Credit Suisse will be in charge of selling between €6,5 billion and €7,5 billion worth of Loterias shares by the end of this year, an initial public offering that is expected to become the largest ever recorded in Spain, marking one of the biggest privatizations in Europe in the last decade, according to sources.
The official announcement on the matter could occur this Monday. The Lotteries are also expected to name two or three Spanish banks to take part in the agreement. A spokesperson for the Lotteries could not be reached for comment.
The sale of the 30% stake in the Lotteries is a central component of Spain's plan to reduce its debt burden. In addition to the Lotteries, Spain will also privatize its two largest airports. As a first step, the Lotteries hired Rothschild as a financial advisor in May. The plan is expected to move forward in the first week of November.
PriceWaterhouseCoopers is acting as strategic advisor to the Lotteries, and Clifford Chance and Uria Menendez are the legal advisors.