BCP increases capital and Chinese group Fosun wants a 30% stake

10 January 2017

The board of Portuguese private bank of Banco Comercial Portuguese (BCP) approved a capital increase of 1.3 billion euros, which will be used to repay 750 million euros in outstanding state loans and to strengthen equity, the bank said in press release issued on Monday.

The capital increase is reserved for existing shareholders, the share price of the Public Subscription Offer was set at 9.4 euro cents and at the end of the operation, BCP will have a registered capital of 5.6 billion euros represented by over 15.113 million shares.

The Chiado company (Luxembourg), Chinese group Fosun, which currently controls 16.67% of the share capital of the bank, has already put in an “irrevocable” buy order to increase its stake to 30% of BCP.

The statement issued by the Portuguese Securities Market Commission said the Chinese group is committed to keeping the BCP shares for three years as from 18 November, 2016.

The board of BCP also said that although Angolan state oil company, Sonangol had been authorised by European Central Bank also to increase its stake in the bank to 30%, it has no “information regarding any decision by Sonangol with reference to the offer, such as exercising, selling and/or purchasing any subscription rights.”

The Angolan oil company, which is undergoing and in-depth restructuring process following the nomination of a new board of directors, controls 14.87% of the share capital of the Portuguese bank.

Spanish bank Sabadell, another historical shareholder of BCP, announced it would leave the bank’s shareholder structure in December 2016, a divestment that significantly affected the price of the bank.

The meeting of the board also approved two new directors appointed by the Fosun group, namely João Nuno Palma, who has executive functions and Chinese citizen Lingjiong Xu, non-executive. (macauhub)