Portuguese banking group CGD takes majority stake in Mozambique’s BCI bank and changes local partner

18 June 2007

Lisbon, Portugal, 18 June – Portuguese banking group Caixa Geral de Depósitos (CGD) plans to raise its stake in Mozambican bank, BCI-Fomento de Moçambique from 42 percent to 51 percent, and start working with anew local partner, a poskesperson told Portuguese news agency Lusa Friday.

Boosting its stake is a result of a restructuring of Mozambique’s second-largest bank, which will no longer be part-owned by Mozambican group SCI, as its has been replaced by the Infitec group.

SCI will sell its 28 percent stake in the bank, with 18.5 percent going to Infitec, 9 percent to CGD and 0.5 percent in shareholder equity and to small shareholders.

Portugal’s BPI bank group will remain as part of the bank’s shareholder structure as the second-largest shareholder, with a stake of 30 percent.

These changes to the shareholder structure must still be approved by the Mozambican authorities.

BCO was founded at the end of 2003, as the result of a merger of Banco Fomento (BPI Group) with BCI (CGD Group), making it the second-largest retail bank in Mozambique, with a current market share of over 30 percent.

After the merger, the shareholder structure was headed by CGD, with 42 percent of shares, followed by BPI with 30 percent and Mozambique’s SCI set up by former finance minister, Magid Osman, with 28 percent. (macauhub)