BPI An­golan share­holder hopes to re­sume talks with Caix­a­bank soon

The Pak Banker - - FRONT PAGE -

San­toro Finance, a hold­ing com­pany of An­golan in­vestor Is­abel dos San­tos, is baf­fled by Caix­a­bank break­ing off talks on a nearly ready deal for the Span­ish bank to buy dos San­tos's stake in Por­tuguese lender BPI and hopes to re­sume ne­go­ti­a­tions soon.

"It's hard to un­der­stand what has hap­pened af­ter the sides have reached un­der­stand­ing on key terms of the deal, namely the fi­nan­cial is­sues," said Mario Leite Silva, CEO of San­toro.

"Even so, we be­lieve that com­mon sense will pre­vail and di­a­logue will re­sume im­me­di­ately." Caix­a­bank - BPI's largest share­holder - said on Fri­day it had failed to reach a deal with San­toro that would have al­lowed BPI to off­load some risky An­golan as­sets be­fore a ma­jor reg­u­la­tory change, adding it would keep work­ing with BPI to find a so­lu­tion to risks linked to BPI's An­golan unit BFA.

On April 10, Euro­pean au­thor­i­ties will re­quire banks to fully pro­vi­sion for An­golan as­sets and a fail­ure by BPI to off­load its as­sets there by then could lead to heavy costs. Caix­a­bank and dos San­tos have been at log­ger­heads for months over an ex­ist­ing 20 per­cent cap on Caix­a­bank's vot­ing rights that blocked the Span­ish bank's bid last year for the 56 per­cent of BPI it did not al­ready own.

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