Bank of Portugal sells majority share in ‘good bank’
EC permits recapitalisation deal with US investor after lengthy attempts at sale
Portugal’s central bank has concluded its sale of a majority shareholding in the so-called good bank it formed more than three years ago after the failure of a commercial bank.
The Bank of Portugal has sold 75% of shares in Novo Banco to US investment firm Lone Star, it announced on October 18. The US company has committed to recapitalise the bank by a total of €1 billion ($1.2 billion) of its own funds and to raise a further €400 million in the capital markets. The remaining 25% of shares in
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