Gala makes 5x from utility stake sale

Gala Capital, the Spanish buyout firm which led a €3.7 billion offer for Spanish airline Iberia, has sold a stake in a domestic utility company Bridgepoint and Mercapital exited in 2006.

Spanish buyout firm Gala Capital has sold a minority stake in Spanish utility Acciona Eólica to its parent company for €77.1 million ($113.3 million), according to a statement.

Gala made a 5.4 times return with an internal rate of return of 66 percent over more than three years from the stake sale.

European buyout firm Bridgepoint and Spanish firm Mercapital exited the company in 2006 selling their 93 percent stake in company utility company Corporación Eólica to Acciona, which has now acquired the remainder of the company.

Gala led a consortium in November last year which made an indicative offer for Spanish airline Iberia valuing it at up to €3.7 billion. TPG-BA consortium abandoned its long-running bid for the Spanish airline in late November shortly after the rival offer materialised. In January the Gala Capital consortium remained in talks with Iberia, according to media reports.

The firm was founded by US bank Merril Lynch’s former president in Spain and Portugal Jaime Bergel and a former employee of consultant McKinsey Carlos Tejera.

Amongst its shareholders are Spanish business luminaries Alicia Koplowitz, Manuel Jove and the Pino family, as well as the pension fund of Spanish telecoms giant Telefónica. The firm also invests money in Spain for George Soros Private Equity.