CGD puts one of the two banks it controls in Cabo Verde up for sale

Portuguese state-owned bank Caixa Geral de Depósitos (CGD) will sell one of its two banks in Cabo Verde (Cape Verde), and it has yet to decide whether it will be Banco Comercial do Atlântico or Banco Interatlântico, the chairman of the bank said on Friday in Lisbon.

CGD is present in Cabo Verde through Banco Comercial do Atlântico, the market leader in the archipelago, with a 52.5% stake, and Banco Interatlântico, where it controls 70% of the capital stock.

The Finance Ministry announced on Thursday in Lisbon that CGD will have to reduce its presence in Cabo Verde and Mozambique by the end of 2020, under a review authorised by the European Commission of the bank’s 2017/2020 Strategic Plan.

Paulo Macedo said the aim is to streamline the operation in the Cabo Verde archipelago by focusing on a single bank, “rather than looking for a significant financial return.”

In relation to the operation in Mozambique, Paulo Macedo said on Monday that the objective is to reduce the stake in Banco Comercial e de Investimentos (BCI) from 61.5% to the 51% held before the departure of Mozambican group Insitec, and with this in mind there would be talks with with partner Banco BPI, which holds a 35.67% stake in the bank.

The chairman of CGD said that the sale of operations in Spain and South Africa is already underway, and the deadlines for binding proposals are running.

The Portuguese government selected Spanish banks Abanca Corporación Bancaria (present in Portugal with the brand Abanca, after buying the Deutsche Bank operation), Banco de Credito Cooperativo (established in 2014 by 32 regional savings banks) and US investment firm Cerberus European Investments to submit binding proposals for the purchase of CGD’s bank in Spain.

In South Africa, the government selected four entities, including two consortiums, to buy Mercantile Bank.

Regarding the sale of the operation in Brazil, Macedo said that a timetable for the process would be released soon, but added that “there needs to be demand for a timetable to be set.” (macauhub)