Hong Kong financial company interested in Portugal’s Novo Banco

14 October 2016

The China Minsheng Financial Holding Corporation Limited (CMFH) of Hong Kong has presented a non-binding offer for the purchase of a controlling stake in Portuguese bank Novo Banco, Portuguese newspaper Público reported.

The newspaper also wrote that the Chinese company presents itself as a “cornerstone investor,” which means it is applying for the purchase either a majority or minority stake, although it has to be a controlling stake, with the commitment of an Initial Public Offer (IPO) for the rest of the capital.

Novo Banco, the bank that inherited the healthy assets of the bankrupt Banco Espírito Santo, has to be sold in full by the end of August 2017, the deadline set by the European Commission.

The financial company has been studying Novo Banco since its international presentation held in March/April, and only now, in the final preparation of the proposal, hired Haitong Bank, formerly Banco Espírito Santo de Investimento, as financial advisor.

The Económico news said CMFH was the only candidate considering floating some of the bank’s stock, which is a solution being considered if negotiations with the candidates (Banco BPI, the consortium of investment funds Apollo/Centerbridge, Lone Star, also an investment fund, and the Portugal’s BCP) are not successful. (macauhub)