The Chinese want an increase of capital higher than 500 million in Portuguese Novo Banco
The Bank of Portugal received a formal proposal from the China Minsheng Bank for the acquisition of the majority of the Portuguese bank - more than 500 million in capital.
China Minsheng presented to the Bank of Portugal an offer to buy the majority of Novo Banco’s capital through an increase in capital, discloses Portuguese newspaper Público. And ECO knows the Chinese are willing to increase capital by more than 500 million euros. The Bank of Portugal, supervisor of Novo Banco – which is headed by António Ramalho – awaits new offers until the end of the month.
By the end of last night, the Portuguese newspaper DN brought forward statements from an interview to Portuguese prime-minister António Costa that confirm a fifth offer for Novo Banco, with different terms than the proposals already being discussed.
Admitting the dispersion of stock exchange capital, the Bank of Portugal considers this option a ‘plan B’. Newspaper Público adds the Chinese proposal is not binding and that it comes “within a solution for the market”: Minsheng acknowledges buying more than 50% of Novo Banco’s capital while having the remaining stocks listed and increasing capital.
The offer made by the Chinese will now be assessed by the Resolution Fund — who leads the sale and has already made a 4,900 million euros injection, 3,900 million of it being from the state. Besides Minsheng, Portuguese banks BCP and BPI as well as three private equity funds are applying to the open procedure for the conveyance of Novo Banco.
The initial goals for the closing of the dossier, with Sérgio Monteiro leading the working team, have repeatedly failed to be successful. The deadline for the dossier is August of 2017, when the Resolution Fund, the seller, must abandon Novo Banco.
