Investors interested in buying the state’s shareholding of 60.5% had until 8.00pm this evening to register their interest. Six businesses are confirmed to have made offers.
This afternoon, Banif’s board announced that it has accepted a bid for its business in Malta.
In a note sent to the stock market regulator, Banif today announced that it has reached agreement for the sale of Banif Banca in Malta to an undisclosed buyer for €18.4 million.
This sale is subject to authorisation from the European Central Bank, the European Commission's Competition Directorate, the Maltese Competition Directorate General and the Maltese Financial Services Authority, none of which should have any good reason to block the sale.
Banif boss Jorge Tomé said, with rare insight, that this transaction will have a positive impact on the solvency ratio of the bank.
In 2012 the Portuguese government injected €1,100 million into Banif, €700 million in capital and €400 million in convertible bonds ('CoCos). The bank defaulted on a €125 repayment and the fun started.
Since 2012, Banif has been negotiating a restructuring plan with the European Commission which notably has not yet been approved.
Banif also is trying to sell Banco Banif Brazil, Banco Caboverdiano de Negócios and the insurance company, Açoreana.
Banif management’s has been "involved in a formal and structured process" to sell the state's 60.5% with the Spanish banks Santander and Popular and the US Apollo fund, the main contenders.
A Chinese group based in Hong Kong who wanted to acquire the banking group, asked for an extension of the bid deadline until 23 December. It is unclear whether this company is included in the final six.
Sunday's media included the name of US investment bank J. C. Flower.
The price offered should be the main criterion for selecting the future Banif owner, although the rules of the sale process do not make any reference in this regard.
It is certain that the price offered will be much lower than the €700 million that the state injected in 2012.
The future buyer will have been required to pay the EUR 125 million that the bank has not returned to the State and part of the EUR 700 million that were also injected
Banif’s shares were suspended from trading on Thursday while the stock market regulator waited for the "provision of relevant information" about the sales process.
The European Commission’s Directorate-General for Competition has been looking into the state’s 2012 bailout of Banif and recently stated that there are ‘major doubts’ that the bank can ever repay the public money thrown at it by the Passos Coelho government.
The Prime Minister, António Costa, said today in Brussels that he hopes that a deal can be done that will repay the public purse so he does not have to amend this year’s state budget.
