Novobanco winds down Africa operations ahead of sale to French group
With just a month to go before it changes hands, Novobanco has continued to streamline its operations and exit certain businesses. In recent days, the bank led by Mark Bourke has dissolved NB África.
The dissolution of NB África took place on the last day of March, almost one month before France’s BPCE group is set to take control of the Portuguese lender. Under the agreement, BPCE will pay €6.4 billion to Lone Star (75%) and the Portuguese state (25%).
At the end of last year, Novobanco’s perimeter included 14 subsidiaries and associated companies, among them NB África. The holding was recorded in the bank’s accounts with a net value of €11 million and an impairment loss of €55.5 million.
The bank declined to comment on the closure of the entity, which was established in 2009 under the name BES África and played a key role in former CEO Ricardo Salgado’s strategy to expand into African markets. The company managed stakes in several African banks, notably Moza Banco in Mozambique and the International Investment Bank in Cape Verde.
The former BES Angola — now Banco Económico — where a €3.5 billion capital shortfall was uncovered, had been held directly by BES rather than through the NB África structure.
Following the 2014 resolution measure applied by the Bank of Portugal, BES África was transferred to the bridge bank that would become Novobanco. Subsequently renamed NB África, the Mozambican and Cape Verdean operations were gradually sold off, with the bank only fully exiting in recent years.
In the case of the International Investment Bank, after its sale to Bahrain’s IIBG Holdings in 2018, Novobanco retained a 10% stake until 2024, when it exited entirely. As for Moza Banco, the lender sold its stake to the Arise fund, completing its exit in 2023.
Board and auditor changes scheduled
The winding down of NB África comes as Novobanco prepares for its new ownership. The signing of the sale agreement is scheduled for 28 April. The following day, a general meeting of shareholders will be held to appoint new members to the general and supervisory board, select a new auditor and amend the bank’s articles of association.