The Banco de Portugal, the institution regulating the Novo Banco sale, was hoping for higher bids, but only got Apollo to raise their offer.
According to Banco de Portugal, out of the three contenders, only the American Apollo company increased the bid for the “Novo Banco” buyout. The two other Chinese competitors, Fosun, and Anbang didn’t raise their bids.
Novo Banco, which is still the third largest bank in Portugal, is the successor to Banco Espirito Santo. The bank went through a state rescue process last year, after being exposed to the debts of the founding Espirito Santo family.
Even though Apollo raised their bid, Anbang still holds the highest offer of about 3.5 billion Euros. Included in offer value could be the increase to bank’s capital, but the exact details are still kept secret.
The Banco de Portugal announced it should be reaching a decision soon. It’s an important deal for the country’s banking system because, in a Novo Banco sale loss scenario, the bill goes directly to the Portuguese banks resolution fund.