China Minsheng Financial Holding makes proposal to buy Portugal’s Novo Banco

7 November 2016

Investment company China Minsheng Financial Holding is one of five candidates for the purchase of Novo Banco, as well as investment funds Apollo Global Management and Centerbridge Partners, Lone Star Funds and Banco Commercial Portugues, according to the Portuguese press.

The Bank of Portugal announced on Friday it had received five proposals “under two sales procedures – Strategic Sales Procedure and Procedure for Sale on the Market” and added that their analysis will be based on the criteria set out in the contract documents published last April.

This second attempt to sell Novo Banco has had several closing deadlines, but was pushed forward from the end of July to Friday, 4 November, as the proposals submitted to the resolution fund turned out to be vague and did not meet the aims of the Bank of Portugal.

The resolution of Banco Espírito Santo (BES) cost 4.9 billion euros, 3.9 billion of which was paid for by the Resolution Fund and the remainder by the financial system, and the chances are considered slim to none that the sale will yield a similar sum. (macauhub)