Sealed deal. Abanca buys at least 95% of EuroBic

  • ECO News
  • 10 February 2020

The deadlock in EuroBic's shareholder structure has been resolved following the announcement of Isabel dos Santos' departure. The Abanca is the buyer of the Portuguese bank.

Abanca is the buyer of EuroBic, in a deal that solves doubts in the shareholder structure of the Portuguese bank, after Angolan businesswoman Isabel dos Santos put her stake for sale, following the Luanda Leaks case. No numbers were disclosed from the transaction.

“Abanca presented a binding bid for at least 95% of the capital, which was accepted by the shareholders representing that percentage,” announced Fernando Teixeira dos Santos, president of EuroBic, in a message distributed internally and to which ECO had access.

“This acquisition will certainly open a new phase in the life of this bank, strengthen the sustainability of its activity and the defense of the interests of its customers and employees,” also stressed the former Finance Minister.

Abanca, on the other hand, recalls that the EuroBic’s acquisition “is subject, in this operation, to a due diligence process and authorizations from regulatory authorities.”

EuroBic and Abanca had advanced last week for exclusive trading, as ECO advanced first-hand. This happened after Juan Carlos Escotet, owner and chairman of the Galician bank, said on Tuesday that he was looking with great interest at this dossier, but demanding to control at least 75% of the bank’s capital. That is, the 42.5% position of Isabel dos Santos was not enough for the Spaniards, so Fernando Teles, a long-time partner of the Angolan businesswoman, would also have to alienate his 37.5%.

“What has been Abanca’s policy is that we do not participate in any type of integration or merger in which we do not control the bank. If there is not a minimum control of 75%, we do not participate,” Juan Carlos Escotet said Tuesday during Abanca’s annual results presentation conference.

Escotet demanded control of EuroBic to implement Abanca’s business model and corporate model, expecting the end of the EuroBic brand with the merger into Abanca’s current business in Portugal.

According to the Galician bank, with EuroBic’s acquisition, Abanca Portugal will have a turnover of 18 billion euros, including credit and deposits.

EuroBic closed 2019 with an NPL ratio of 6.4%. It employs 1,482 workers and operates a network of 184 agencies.