Link Securities | Caixabank (CABK) is considering a takeover bid for Portuguese bank Novo Banco. There are other interested entities, such as the French group BPCE and the Portuguese Caixa Geral de Depósitos, as reported on Friday by elEconomista.
Novo Banco was created in August 2014 after the Bank of Portugal intervened to rescue Banco Espírito Santo (BES), which at the time was one of the country’s largest and most emblematic private banks.
In October 2017, 75% of Novo Banco’s capital was sold to the US fund Lone Star Funds, which specialises in distressed assets, in exchange for a €1 billion investment. The remaining 25% is controlled by the Portuguese government.
Lone Star is now considering exiting the company, and is considering an IPO or a sale of its stake. In this scenario, Caixabank is the bank that has shown most interest in participating in the operation. Although elEconomista.es has also pointed out that Santander (SAN) is also considering the transaction, after selling its subsidiary in Poland. However, bank sources say they are not interested in participating.
