has Not been closed to private participation and a year after entering the CAF have not materialized new purchases by Socade
The instruments star of the basque Government to facilitate the financing business, they remain in stand-by. A few months for the investment fund business, public-private operational – is expected to be operational in the first half of 2019 – is still not fleshed out the structure and final composition that you have this tool, that will count next year with 125 million euros expandable up to 250 million for temporary entry into the business in growth, consolidation and internationalization, and that what he pursues is to embed these companies in the Basque country.
The deputy minister of Industry of the basque Government, Javier Zarraonandia, who participated yesterday in a day of organized business by Price Waterhouse Coopers, pointed out that it kept open the negotiations with the Bank of Sabadell, Santander, BBVA, Caja Rural de Navarra, Elkarkidetza and Geroa, in addition to the EIB and the ICO, in order to attract their participation to this fund. That is to say, that are at the same point that in the month of July, when it announced the launch of this financing tool in which it is confirmed they will participate, in addition to the Government and the three provincial councils, Kutxabank, Bankoa, Caixabank, Mondragon, Lagun Aro and Itzarri.
Neither is having a lot of activity in the other financial instrument that the basque Government is already operating, the society of capital risk Socade, reinforced with 100 million euros to the present legislature.
Almost a year after the Executive announced the decision of a 1,24% in the share capital of the company, CAF, has not been input in any other company by the society of capital risk, in this case dependent only on public funds. And that’s despite the fact that the presentation of the entry in CAF, at the beginning of January of this year, it was indicated that the 15 million employees in the company in Beasain would be only the beginning of the participation in other companies considered to be tractors for the rest of the basque industry.
however, to point the end of the year, the basque Government acknowledged that it is “analyzing new potential transactions, whose risks and possibilities are contrasting,” said the deputy minister of Industry, but it is not finalized whether they will be able to materialize any operation before 2018 comes to an end.
Although the deputy minister did not refer to The Naval citing these operations takes capital that are in the process of analysis, the formula of risk capital could be one of the used to enter the shipyard vasco, “whenever there has been a private investor”, added the deputy minister, repeating the maximum in which he stressed the minister Arantxa Tapia again and again.
The objective of these two funds, is “to collaborate with the shareholders of the company for the development of the project,” according to the deputy minister, particularly at a time when the company needs to gain dimension and internationalise.
Precisely, the funding difficulties of companies to grow through acquisitions focused the day’s business was closed by the deputy minister, developed under the title Keys to the inorganic growth strategy and financing.
she presented her point of view, entrepreneurs like Anton Pradera, chairman of CIE Automotive, in charge of banking as the deputy director general responsible for the wholesale business of Kutxa Bank, Fernando Irigoyen, or of investment funds as Iñaki Cobo, head of Private Equity at KKR.
During the panel discussion in which participated, Prairie highlighted that gain in dimension is something that is necessary on the company and that the best way to tackle the crisis is to be diversified geographically. So who stressed the need to get outside to gain in dimension, as carried by CIE throughout its history.
The funding is one of the issues that can slow down a project, and during the discussion, it became clear that share of investments through private equity is not the first option of the entrepreneurship basque, which boasts a corporate culture different from other places: “When you do an acquisition, what you want is to fall in love with the other company, seek a long-term investment”, he said taking for granted that the investment of funds tend to be more limited in the time. “That’s not to say that private equity is not good,” he said, though he referred to them more as competitors than as potential partners for a project. “When I go to make a purchase I always stick with a private equity firm and a chinese,” he joked.
Iñaki Cobo of KRR pointed out, however, that the day-to-day operations is “to sit with the steering group”. “It’s a business of people”, he stressed.
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