In order to not sell a crown jewel for less than it is worth, the Spanish government cancelled the Loterías IPO, which was intended to sell 30% of the state-run gaming company. Investors called for a 40% discount with respect to the valuation done by the organizing bank. 15 billion euros had been raised, when the minimum required to complete the deal was 18 billion euros. The lottery company -- a sound business without doubt and with plenty of business and earnings -- is a national treasure so valuable that it would be imprudent to sell it at a discount just to quickly pay off national debt that we racked up due to the socialist government's economic mismanagement.
The government finally agreed with those who pointed out that the deal would have been outrageous and unfavorably priced. And the PP, whose statements gave the coup de grâce to the deal, advised against the sale in full pre-campaign mode due to debts that could arise.
Now the pressure is on the Aena privatization deal, which had the same goals as Loterías. Adding a load to the Treasury, because the money was destined to amortize debt ahead of time or reduce financing claims until the end of the year.
Everything suggests that the role of financial lenders has been influential. In full emission of promissory notes and fundraising deposits in order to improve liquidity, whatever new agent adds risk of further splitting up how many pieces of the pie will be shared. Even more so for the "bancario medio" clients. The government has done well to not complete the deal, but it could have reflected on it some more.
