China’s Fosun takes stake in Portuguese bank
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. –