Portugal’s Novo Banco completes sale of controlling stake in Cabo Verde bank

12 July 2018

Portuguese bank Novo Banco has completed the process of selling a 90% stake in Banco Internacional de Cabo Verde to IIB Group Holdings, a company based in Bahrain, said on Wednesday the bank that inherited the quality assets of the bankrupt Banco Espírito Santo (BES) in a market filing.

“The signed sale agreement also provides for a set of put and call options, with terms already agreed, which cover the remaining 10% and can be exercised within 3 to 4 years from that date,” said the statement distributed by the Portuguese Securities Market Commission (CMVM).

This was the second attempt to divest the Cape Verdean bank after having failed to sell to a group of investors led by Portuguese businessman José Veiga in 2016.

Novo Banco underlined that “this transaction represents another important step in the process of divesting non-strategic assets,” “continuing its strategy of focusing on the domestic and Iberian banking business,” under commitments made to the European Commission.

The Cape Verdean central bank announced int May that it approved the entry of IIBG Holdings into the capital stock of Banco Internacional de Cabo Verde (BICV), “because it understands that the acquirer guarantees the sound and prudent management of the institution to be acquired.”

The BICV was 99.9% directly held by Novo Banco África, SGPS and the remaining 0.01% by Portugal’s Novo Banco, and indirectly by the Portuguese Resolution Fund of the Portuguese State and US investment fund Lone Star, through its subsidiary Nani Holdings.

Banco Espírito Santo Cape Verde, as it was called prior to BES’s resolution, had losses of 56 million Cape Verdean escudos (508,000 euros) in 2017, more than double that of 2016, contributing assets of 90 million euros and liabilities of 76 million euros and equity of 14 million euros to the Novo Banco balance sheet. (macauhub)