State, Resolution Fund and BPCE sign agreement on the sale of Novo Banco

The Ministry of Finance and the Resolution Fund signed an agreement with the BPCE Group (Banque Populaire et Caisse d'Epargne) and Nani Holdings, majority shareholder in Novo Banco (and an entity held by Lone Star Funds) for the sale of the minority stakes held with the institution (specifically 11.5% held by the Portuguese State and 13.5% held by the Resolution Fund). 

The agreement follows on from the Memorandum of Understanding of 13 June on the purchase by BPCE of 75% of the Novo Banco share capital to Lone Star Funds. Once the process is completed, the French group BPCE will become the single shareholder of the fourth largest Portuguese bank. 

The sale was conducted in the same financial conditions applied to the sale of the 75% stake held by Lone Star Funds announced in June.

This operation is the successful completion of a long stage that began with the BES resolution and later sale of Novo Banco to Lone Star, contributing to safeguarding financial stability. 

The acquisition by BPCE, the second largest French banking group and the fourth largest in the Euro Area in terms of equity reflects the progress achieved by the Portuguese banking sector in the last few years, which today is in a solid and stable position, and represents for Portugal a sign of confidence in our country and economy, which is na added-value in the support and financing offered to Portuguese citizens and companies. 

This operation also enables a significant recovery of the public funds used to restructure Novo Banco. The sale of the State and Resolution Fund’s stake in Novo Banco, together with the distribution of dividends this year enabled the public sector to recover almost 2 billion euros of the funds injected into the institution. 

The accession agreements were signed in the Ministry of Finance in the presence of Joaquim Miranda Sarmento, Minister of State and Finance, Luís Máximo dos Santos, Vice-Governor of the Portuguese Central Bank and Chairman of the Resolution Fund, and Nicolas Namias, CEO of the BPCE Group.