China’s Fo­sun takes stake in Por­tuguese bank

The Myanmar Times - - International Business -

CHI­NESE con­glom­er­ate Fo­sun will be­come the big­gest share­holder in the ail­ing BCP, Por­tu­gal’s big­gest pri­vate bank, by agree­ing to buy a 16.7 per­cent stake.

Fo­sun is pay­ing nearly 175 mil­lion euros (US$185 mil­lion) via a cap­i­tal in­crease af­ter an agree­ment reached last week.

Por­tu­gal’s bank­ing sec­tor is sad­dled with debt and bad loans and had to be res­cued twice by the state since 2014.

Fo­sun said it aims to in­crease its share­hold­ing in BCP to around 30pc next year.

“The trans­ac­tion is ex­pected to ex­tend the group’s in­ter­na­tional net­work and help the group en­ter the Poland, Mozam­bique, An­gola and Switzer­land fi­nan­cial mar­kets rapidly,” Fo­sun said in a state­ment. Mozam­bique and An­gola are for­mer Por­tuguese colonies.

An­gola’s state oil com­pany So­nan­gol was up un­til now the largest share­holder in BCP with a stake of 17.84pc, fol­lowed by Span­ish bank Sabadell with 5.07pc.

But af­ter the di­lu­tion of BCP’s ex­ist­ing cap­i­tal Fo­sun will be­come the largest share­holder with its 16.7pc stake.

Fo­sun, China’s largest pri­vately owned con­glom­er­ate, is al­ready present in Por­tu­gal with stakes in the in­surer Fidel­i­dade and med­i­cal ser­vices group Luz Saude. –

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