BPI’s problem in Angola resolved to the satisfaction of all sides

22 September 2016

The general meeting of Portuguese bank BPI’s shareholders approved the removal of limitations on voting rights, with Spanish bank CaixaBank increasing the price per share that it is offering in the Takeover Bid (OPA) for the bank, reported the Portuguese press on Thursday.

Shareholders gave permission for the CaixaBank to take a controlling stake in BPI, as despite having a 44.81% stake in the bank its voting rights were limited to 20%, by imposition of the shareholder agreement.

With the end of the limitation of voting rights, which was a condition for the voluntary takeover bid launched by the Spanish bank of BPI, CMVM considered that the CaixaBank now has a dominant position.

With this change, the Catalan bank began is now required to launch a new tender offer , which, as it has different rules to the voluntary offer, requires a slight price increase, from 1.113 euros to 1.134 euros per share, or an additional two euro cents.

To meet the requirements of the European Central Bank, BPI will sell 2% of its position in the capital of Banco de Fomento Angola, reducing its stake in the Angolan bank from 50.1% to 48.1%, giving control of the bank to Angolan company Unitel, the only other shareholder of the Angolan bank.

The share capital of Banco de Fomento Angola is currently split between two shareholders – Banco BPI with 50.1% and Unitel with the remaining 49.9%.

In addition to majority control of the capital, the agreement involves “the transfer of the political rights of the stake,” which means that BPI’s stake becomes purely financial, and the Portuguese bank will only received the corresponding part of the results generated in the form of dividends. (macauhub/AO/PT)