Sale of Novo Banco to Lone Star finalised in next few days

By TPN/Lusa, in Business · 12-10-2017 08:26:00 · 0 Comments

The sale of Portuguese bank, Novo Banco to US private equity firm Lone Star will be finalised in the next few days after the European Commission approved the bank’s reconstruction plan, the Portuguese Finance Minister said in a statement on Wednesday .

The approved measures will guarantee Novo Banco´s long-term viability, the statement noted.

Portugal decided to initiate in August 2014, the resolution of the Banco Espirito Santo (BES) under the Portuguese banking resolution framework and transferred certain assets from BES to the Novo Banco, measures which were approved on Wednesday.

The pledge agreement between the Resolution Fund and Lone Star was signed on 31 March 2016. The agreement includes the sale of 75% of Novo Banco whilst the Resolution Fund keeps 25%.

Lone Star didn´t actually pay anything but has agreed to inject €1 billion to capitalise Novo Banco, €750 million of which will be available once the contract has been finalised and the other €250 million by 2020.

The Minister also said the process was an important stage for the stability and improvement of Portugal’s economy.


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