Bondholders of Tranquility want to prevent sale to Apollo – Economic

Bondholders of Tranquility want to prevent sale to Apollo – Economic

Ana Maria Barroso

maria.barroso@economico.pt

15:46

A group of investors must deliver today in court for an injunction to block the sale process, after yesterday’s New Bank have reported to have reached an agreement with the American group.

A set of bond forward today in court with an injunction aimed at trying to block the sale of Tranquility to American Apollo. The information, initially advanced by the agency Lusa, has since been confirmed in a statement already issued by the Association of Technical Analysts and Investors Capital Market (ATM), which has been involved in this dossier.

The ATM recalls that in Earlier this month a group of bondholders has advanced a lawsuit requesting the declaration of invalidity of the lien on the shares of Tranquility, until now in the hands of ESFG , in favor of the New Bank. But, given the evolution of the sales process to the American Apollo, and “before a just and well-founded fear that when the main process terminates with the normal delay the legal process, the decision to be rendered no longer come the time “, it was decided to move forward” on today’s date one unspecified injunction “to prevent” irreparable damage or at least very difficult to repair “if the sale to Apollo however materialize.

Contacted by the Economic , President of ATM, Octavio Viana, argues that “we can not accept an action that is illegal” and therefore bondholders who advanced with the injunction want to stop the sale, since there is a well-founded fear that if they do not catch operation the damage is irreparable. “Same responsible specifies bondholders are six authors of the injunction, which can then join others, and now it will be up to the judge to assess.

Yesterday, the New Bank confirmed in a statement it had reached agreement with Apollo Management “for the sale of the shares of the Insurance Company Tranquility”. This is to be exercised at the time of sale, the financial pledge of shares of Tranquility.

“These actions were given in financial pledge to the New Bank to cover a credit to the Espírito Santo Financial Group” recalls the statement yesterday. Using an option provided by law, the shares of Tranquility will not reach into the swing of the New Bank, and transferred its property, which will be discounted fitting for the financial institution and should exceed 50 million.

This is confirmed as the Economic already advanced, that the sale will be made for approximately EUR 215 million, it is expected that approximately 150 million are intended to capitalize on Tranquility.

Shareholders and bondholders have strongly opposed the pledge of the shares of the company. Yet recently ESFG , which held Tranquility via Partran have shall be committed to the New Bank not to proceed with any legal action to stop the sale, retaining, however, the defense that the fitting of the same should go for the group and not to the bank.

normally Continuing the process for the sale of Tranquility Apollo, it is estimated that the sale can be completed within one to two months. “The transfer of the shares of Tranquility is subject to verification of a set of conditions, including regulatory approvals required for the transaction,” the statement also said yesterday the New Bank.

The Economic’ve also tried to obtain a comment by the New Bank.