Banco de Portugal, the institution overseeing the sale of Novo Banco, confirmed in August 2015 that American private equity firm Apollo Global Management increased its bid for the troubled Portuguese lender. The two other contenders—Chinese conglomerates Fosun International and Anbang Insurance Group—did not raise their offers.
Novo Banco, Portugal's third-largest bank by assets, was created in August 2014 as a "good bank" successor to Banco Espírito Santo following its collapse. The state-backed rescue isolated toxic assets linked to the founding Espírito Santo family's debts, with the resolution funded by Portugal's banking sector.
While Apollo improved its offer, sources familiar with the negotiations indicated that Anbang's bid remained the highest among the three finalists. The exact terms of each proposal were not disclosed by the regulator.
Banco de Portugal stated it expected to reach a final decision in the coming weeks. The outcome carried significant implications for Portugal's financial system: any shortfall from the sale would be borne by the Portuguese banks' resolution fund, potentially requiring additional contributions from the country's banking sector.
Editor's note: This article was originally published in August 2015. The Novo Banco sale process ultimately concluded in October 2017, when Lone Star Funds acquired a 75% stake in the bank.
