Herminia Saraiva
Verba in the contract giving exclusive trading the Apollo and assesses the insurer in the order of 220 million. Direct payment to the New Bank is only 48 million.
The New Bank can only run side Tranquility because the customers paid. In this respect the Tranquility is performed by the value that the bank forward to paying customers, those 48 million euros.
Apollo Global Management will pay for control of Tranquility approximately EUR 215 million. The value is entered in the contest which was however won by ‘private equity’, found the Economic Daily. This amount includes payment of EUR 48 million to the New Bank and the injection of 150 million in Tranquility. The payment of the remaining amount is still being negotiated between the Apollo and the New Bank, the Economic Daily found.
Source close to the process told the Economic Daily that the € 48 million payable to the New Bank equivalent the funding already available for repayment of a commercial paper issue of Espírito Santo Financial Group (ESFG ) sold to BES branches . Remember that the Tranquility was valued at € 700 million and given as collateral by BES Group for commercial paper of the group requirement by Bank of Portugal.
The “Business Journal” advances in today’s edition that Apollo would pay 50 million for Tranquility, but this amount plus an amount of EUR 135 million in commercial paper purchased by the EFSG Tranquility, between May and June this year, and a bank deposit of EUR 15 million in the accounts of the Holy Spirit International.
According to the Express reported in early August, these operations were decided by the chief executive of Tranquility, Pedro Brito e Cunha, and the financial manager, Miguel Moreno, already after the insurer has been given as collateral warranty 700 million that the Bank of Portugal (BoP) forced ESFG to do and when we public was that the GES faced serious problems. This money, found the Economic Journal, will now have to be injected by Apollo in Tranquility.
In order to complete the amount of EUR 215 million set by the tender for the sale of Tranquility lack define how they will be paid approximately EUR 20 million, which is being discussed among the lawyers ‘private equity’ and the lawyers of the New Bank.
The operation must be formalized next week, with an expected agreement end to 26 or August 27, knows the Economic Daily. The sale still needs the approval of the Insurance Institute of Portugal, who have three months to decide.
[updated at 20h19 with additional information about the amount of 48 million transaction NEWS]
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