Madrid's local government to sell stake in CRM

A French fund is said to be interested in purchasing the shareholding, which would give it a substantial stake in a vehicle which owns 19 companies. Reports claim that the auction process is already in its final stages.

The Community of Madrid launched CRM in 1997, but has decided to sell on the fund after it made a loss of more than €11m in 2010. According to sources, the outstanding 51% will remain in the hands of Spanish banking conglomerate Bankia.

Many of CRM's portfolio companies have serious financial issues, with 2008 investment Grupo Nupcial Novissima going into liquidation earlier this month. The fund's web page has been closed since the weekend and calls to its offices are being redirected to Bankia.

The local government's investment in CRM was principally financed through Madrid's Institute of Development (Imade), which is believed to have contributed more than €6m in 2008. Imade was however closed in December last year.

Businesses owned by CRM include Copyright Art (100%), Kilowatt (65%), Airport Equipment Iberia (64%), Volupte (53%) and Pets Entertainment (50%).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Southern Europe
• Secondaries
• LP interest secondary
• Spain