Wednesday, October 12, 2016

China Minsheng formalizes a purchase offer of more than 50% of the New Bank – the Public.en

The Bank of Portugal (BdP), which manages the New Database, received from China Minsheng a proposal (not firm) acquisition of the majority of the capital of the Portuguese institution, the study showed the PUBLIC from sources linked to the official authorities.

To offer the chinese arrived in the last few days and is not binding. And arises in the context of a market solution, in which the Minscheng admits to acquire more than 50% of the New Bank with the dispersion of the actions leftover in the stock market and capital increase. The proposal will now be evaluated by the Resolution Fund, the seller, who will open negotiations that may, or may not, have a positive outcome.

Since the via Minsheng is only the Plan B of the BdP to the institution now led by António Ramalho. And the initiative the chinese takes place in parallel with the public tender for sale of 100% of the New Bank, which is contested by five groups: the BCP, the BPI, and three funds north american private equity, the Lone Star Funds and Apollo linked to Centerbridge Partners. Everything indicates that this core can get the offers firm, because all are still working with this purpose.

The direct sale by tender of the entirety of the New Bank to a strategic investor would withdraw definitely from the inside of the Resolution Fund the liabilities with the asset. But a two-way market ensures, in principle, greater appreciation potential, but implies that the Resolution Fund to continue the above, because as a shareholder you will have to trade in the stock market part of the capital to stay out of the agreement. There are weeks, António Ramalho came to communicate the work to the IPO (the dispersion of capital on the stock exchange) is almost complete. But the Commission for the Securities Market (CMVM) have, in this option, a strong word to say because the question is a bridge bank created in August of 2014, with the actions living for less than three years.

The team headed by Sérgio Monteiro, the former secretary of State for Transport, Pedro Passos Coelho, in charge by Carlos Costa close the dossier will have to analyze all the alternatives that you are delivered. And decide which is the most competitive from the point of view of the interests of the seller (which already has injected 4900 million euros, of which 3900 million funded by the State) and of the company: the preservation of organic unity and its capitalization.

More important than the price, Sérgio Monteiro wants to ensure that you have a plan (and conditions) to strengthen the capital ratios of the New Bank, to a level comfortable and respond to the regulatory requirements of the European Central Bank (ECB). Any of the possibilities you have to make sense from the point of view of economic and financial to the seller and to the buyer.

The context is critical and timing tight, given that the initial goals were announced to close the dossier have been broken successively. In July, the BdP admitted to find a new shareholder for the New Bank during the Summer. What was not done. This process has been markedly flexible in order to accommodate the operation to the circumstances of the moment.

In any case, the deadline is August 2017, at which time the Resolution Fund will have to leave the New Bank. The general guideline is that, at the end of October (date flexible) the Resolution Fund and send it to the Government its analysis of the various offers and the solutions that will arrive to the prime minister António Costa take the final decision and close the file.


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