US private equity firm Lone Star has indicated to the Portuguese government its plans to sell a 25-30% stake in Novo Banco via an initial public offering (IPO), according to Portugal Finance Minister Joaquim Miranda Sarmento.
This move comes as a partial shift from previous considerations by Lone Star, which, as reported by Reuters in September 2024, citing sources, was contemplating a full sale alongside the IPO option.
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Novo Banco’s valuation is estimated at approximately €5bn ($5.2bn).
Novo Banco, established in 2014 from the bailout of the failed Banco Espirito Santo, is Portugal’s fourth-largest bank.
Lone Star has been its majority stakeholder since 2017, with the remaining shares held by Portugal’s resolution fund and the state.
The government, as clarified by Miranda Sarmento, “has never been informed that Lone Star is selling its entire 75% stake in the bank.”
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By GlobalDataThe discussion of market dynamics extends to state-owned Caixa Geral de Depositos (CGD), Portugal’s largest bank, reported the news agency.
CEO Paulo Macedo disclosed in June that CGD is open to “all the hypotheses,” including acquisitions, to maintain its market position amidst the growth of foreign banks, especially from neighbouring Spain.
Miranda Sarmento emphasised that any strategic decisions by CGD would be made independently, stating, “the government will then make decisions based on this evaluation, but we will not interfere in the management of CGD.”
