Montepio Bank wants to sale participation in Brazilian group

  • ECO News
  • 9 March 2020

Montepio Bank inherited 10% of the Monteiro Aranha group that belonged to Espírito Santo Group. This position, which had been given as collateral for a 50 million loan, is worth about 40 million.

Montepio Bank is in the market selling a stake it holds in the Brazilian group Monteiro Aranha, according to ECO. It is a block of about 1.2 million shares valued at 40 million euros. The shares were inherited by the Portuguese bank following the collapse of the Espírito Santo Group in 2014.

The stake in the Monteiro Aranha Group, a century-old holding company with investments in Klabin (Pulp and Paper), Ultra (LPG and Oil Derivatives) and real estate, had been given by GES as collateral for a 50 million euro loan to Rioforte, according to information gathered by ECO. Rioforte was the industrial arm of GES, which went bankrupt six years ago.

Currently, each share of that Brazilian holding company is trading on the Brazilian stock exchange for 160 reais. This means that the 10.31% position held by Montepio Bank in the Brazilian group is worth, at market prices, around 40 million euros.

The official source of the bank, which is preparing to present the 2019 accounts, was contacted and refused to make any comment.

In September, the Brazilian press had reported that a block of shares valued at 200 million reais (about 40 million euros) was on the market, reporting rumours that it was Montepio Bank that was selling its position in the Brazilian group.

Montepio Bank is one of the biggest shareholders of Monteiro Aranha. Bradesco Seguros holds 12.75% of that holding company, while the remaining capital is in the hands of individual shareholders of several families that control the holding company.