The President of Portugal issued a government decree that will allow Portuguese bank Banco Comercial Português (BCP) to carry out a reverse split (share merger) of the bank’s shares, said the Portuguese Presidency in a statement.
“The President of the Republic promulgated the government decree establishing the share merger regime for issuers of shares admitted to trading on a regulated market or multilateral trading system, in an amendment of the Securities Code” the statement said.
This order will allow BCP proceed to group 75 current shares into one future share so that it will no longer be considered a “penny stock” as each share is currently worth just over 1 euro cent. This decision has already been approved at the general shareholder meeting held recently and is one of the conditions for Chinese group Fosun to take a stake in the banking group.
BCP was prevented from merging its shares given that the Securities Code did not allow listed companies whose shares have no nominal value to carry out this type of operation.
The Fosun group presented a set of conditions to take a stake in BCP through an issue of reserved shares, which would give it an immediate stake of 16.7% in return for 236 million euros. (macauhub)