March 27 (Bloomberg) -- Portugal’s sale of Banco Portugues de Negocios SA to Banco BIC Portugues SA of Angola will be completed Friday after the lender’s bailout and restructuring was approved by European Union regulators.
The Portuguese government will sign the contract to sell BPN on March 30, the finance ministry said in an e-mailed statement today. The European Commission earlier today approved BPN’s restructuring plan, including the sale to Banco BIC. BPN was seized by the Portuguese government in 2008.
Banco BIC, based in Luanda, offered to buy BPN for 40 million euros ($53 million), a fraction of its 180 million-euro asking price.
In return for EU approval for BPN’s rescue, Portugal promised to set a limit on BPN’s core tier 1 capital and adjust liquidity lines requested by Banco BIC to be granted by the state-owned Caixa Geral de Depositos. BPN must also refrain from acquisitions and dividends and from exercising call option rights for subordinated bond holders until the end of 2016.
EU regulators must approve large government subsidies to banks and have required lenders to sell off assets to compensate for harm to competition.
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