Spain: Three win the lottery

Credit Suisse, Goldman Sachs and JP Morgan have been mandated as joint global co-ordinators for the Spanish government’s €7.5bn IPO of national lottery, Sociedad Estatal de Loterias y Apuestas del Estado.

Bankers had been on tenterhooks since pitching in June for the deal, which is the prize mandate in Europe this year after the Glencore IPO was tainted by its terrible aftermarket. At a time when IPOs are very tough to complete, bankers were desperate to win the mandate for such a large company that is so cash generative it effectively pays a monthly dividend.

The company’s most recent published annual report for the year 2009 showed a €3bn profit, up 3.5% on the previous year despite the economic climate. In the same report the company declared just 572 employees and 20m weekly players across its nine products.

Bankers were still awaiting calls late on Friday, with paperwork yet to be completed and several more banks to be added before the syndicate is finalised this week. Another bank, likely to be Spanish, will be added as a joint global co-ordinator alongside the first three.

Deutsche Bank and Morgan Stanley are understood to have be close to securing bookrunner roles, though Deutsche may have to reassure the government there will be no conflict with its existing role on the sale of the Greek lottery OPAP. Rothschild is advising.