Novo Banco approves 750 million euros’ capital increase
The capital increase will be performed by Lone Star, Novo Banco's new owner. The banking institution will now have a 5,650 million euros' capital.
Novo Banco approved, this Monday, the 750 million euros’ capital increase foreseen in the agreement signed with the North American fund Lone Star. The money will be injected in the next couple of days.
“Novo Banco announces that today, 16 October 2017, Novo Banco held a General Meeting, which resolved on the elimination of the nominal value of the Novo Banco shares, with the capital stock now being represented by shares without nominal value, and decided on a capital increase, amounting to 750 million euros, from 4.900 million euros to 5.650 million euros, by new cash inflows to be made in the next days”, the bank stated, in a press release sent to CMVM (Portuguese Securities Market Commission).
This is the first tranche of the capital increase that was agreed with Lone Star, in the total amount of 1,000 million euros. The second tranche, worth 250 million, will have to be injected by the end of this year.
When the operation is concluded, Lone Star will control 75% of Novo Banco.
