The US Fund Lone Star put the Novo Banco’s operation in Spain for sale, after the injection of €850 million by the Portuguese State into the bank, according to El Confidencial.
According to some sources close to the Spanish newspaper, the decision has even been communicated in recent days by the banks’ CEO António Ramalho to the employees of the Spanish subsidiary. And Novo Banco itself has already contacted investment banks to start the process of finding a buyer, which, if everything goes as planned, should start soon.
This decision comes after the injection of €850 million by the Portuguese State into the Novo Banco, which caused controversy among the political parties. In the market, says El Confidencial, it is still not clear whether this is a sale in block or some business.
The results of the Spanish subsidiary are not known, but sources said to the Spanish newspaper that it has hardly generated profits in recent years. The lack of a determined investment in Lisbon has led to a decrease in business over the last five years, with income from interest and commissions falling from €150 mn to €55 mn in 2019.
Original Story: Eco News | News
Photo: Novo Banco Site
Edition: Prime Yield