Novo Banco sale draws interest from 17 entities

LISBON: The sale of Novo Banco SA, the lender that emerged from the breakup of Portugal's Banco Espirito Santo SA, drew interest from 17 entities after firms including Banco Santander SA and Banco BPI SA said they may make bids. The Bank of Portugal announced the number today, the deadline for entering the process, and said it will check whether the parties meet pre-qualification requirements. Potential investors will get information and be invited to present non-binding bids. The Lisbon-based central bank isn't identifying entities at this stage.

Once Portugal's biggest bank by market value, Banco Espirito Santo was bailed out in August after regulators ordered it to raise capital following the disclosure of potential losses on loans to companies that are part of the family-controlled Espirito Santo Group. The central bank moved the lender's deposits and most of its assets to Novo Banco.

Santander, Spain's largest bank, and Portugal's Banco BPI have said they may enter the bidding. Banco Popular Espanol SA (POP), Spain's fifth-largest bank, and Apollo Global Management, the New York-based private-equity firm, indicated interest, people with knowledge of the matter have said. China's Fosun Group said in October that it might bid.

The Bank of Portugal's Resolution Fund owns Novo Banco after the 4.9 billion-euro ($6 billion) bailout, and the rescue will be repaid by proceeds from the sale. Binding offers are due by the middle of the second quarter, Bank of Portugal Governor Carlos Costa said on Nov. 17. The central bank has hired BNP Paribas SA as financial adviser for the sale.