Lisbon’ Santa Casa da Misericórdia and other social institutions pay 50 million euros for 2% of Montepio
Lisbon' Santa Casa and other social institutions will pay 50 million for 2% of Montepio, which ended 2016 with negative funds; tax credits of 800 million allowed a positive balance in 2017.
The deal is almost closed: Santa Casa da Misericórdia de Lisboa (Lisbon’s Holy House of Mercy) and other social institutions will have 2% of Caixa Económica Montepio Geral. ECO knows that for that “symbolic” percentage, those institutions will pay almost 50 million euros, which corresponds to the assessment made by Associação Mutualista and Tomás Correia of their own bank, of around 2,400 million euros.
So far, it is still unknown how many institutions will enter this pool, but ECO was able to find out that these new shareholders will enter the institution at the nominal price of Caixa Económica’s shares, with a unit value of one euro, and they will not take on more than a 2% stake of the bank’s capital, which is assessed, in accounting terms, in 2,400 million euros.
This operation corresponds to an investment that may go up to 48 million euros, and Santa Casa da Misericórdia will be leading this business. A source told ECO there is the possibility of having these investments stand between 5,000 euros and 10,000 euros, an effort that is reachable for smaller associations.
Montepio ends 2016 with negative equity. Finance Ministry helps with tax credit
Such as ECO previously disclosed, first hand, Associação Mutualista benefited from tax credits to transform negative equity of 251 million euros in 2016 into positive 510 million euros in 2017. All this thanks to an 830 million euros’ contribution from tax credits authorized by the Finance Ministry.
“Associação Mutualista Montepio, in compliance with the international accounting norms, reflected, in its financial statements, the assessment of assets for deferred taxes of 808.6 million euros”, is stated in a press release from the institution, where it informs about the 2016 consolidated results and the 2017 individual results.
“The results ascertained on an individual basis elevate the institution’s equity in a consolidated basis, moving to a positive amount of 510 million euros. Associação Mutualista Montepio overcame the situation of having negative 251 million euros in the 2016 consolidated accounts”, the owner of Montepio stated.
