Lisbon, June 13, 2025 (Lusa) - Portugal's government will sell BPCE the capital of Novo Banco directly controlled by the Ministry of Finance, following the sale of 75% of Lone Star, in a deal that values the bank at €6.4 billion, and the parties announced on Friday.
“The Portuguese government will follow the sale of Lone Star, disposing of the stake directly controlled by the Ministry of Finance,” the ministry said in a statement.
It stressed that “this sale, combined with the distribution of dividends by Novobanco this year, will enable the state to recover almost €2 billion of public funds that the state injected into the institution.”
The Ministry of Finance directly controls 11.46% of Novo Banco's capital through the Directorate-General for Treasury and Finance, with the remaining 13.54% in the hands of the Resolution Fund.
In a statement released today, the Resolution Fund announced that the sale of its 13.54% stake will allow it to receive gross proceeds of around €866 million.
This amount, the Fund said, is in addition to the funds Novo Banco has already paid as distribution of dividends relating to the 2024 results (gross amount: €30 million) and as part of the capital reduction the bank carried out in 2025 (€149 million).
As for the position in Novo Banco held by the Directorate-General of the Treasury, it is expected to yield around €733 million.
For the Ministry of Finance, the sale of Novo Banco to the French banking group BPCE (Banque Populaire Caisse d'Epargne), announced today, “represents a very important sign of confidence in Portugal and the national economy on the part of international investors”.
"BPCE is a bank with high credibility, solidity and performance. BPCE's proposal will enable the creation of value and support for the national economy and Portuguese companies," it said, highlighting that it is "the second largest French bank, one of the largest European banks and a cooperative bank".
The ministry headed by Joaquim Miranda Sarmento emphasises that this operation “concludes a long process, which began with the resolution of BES and the subsequent sale of Novobanco to Lone Star in 2017, contributing to safeguarding the stability of the Portuguese financial system”.
“In addition, this operation ensures a greater diversification of investors and shareholders of banks operating in Portugal, thus promoting more balanced geographical distribution, as the Government emphasised,” it said.
Finally, the government maintains that the deal “also ensures the maintenance of the current structure of the national banking market, while facilitating a smooth concentration process, namely restructuring, and safeguards the levels of competition in the Portuguese banking system”.
The agreement announced today for the sale of the 75% stake held by Lone Star Funds in Novo Banco to the BPCE group provides for the parties to carry out the deal for an estimated €6.4 billion, covering the entire capital of the bank, and it is expected to be completed in the first half of 2026.
In a statement BPCE released early this morning, BPCE said it was still “in talks with the Portuguese Government and the Bank Resolution Fund to acquire their stakes in Novo Banco (11.5% and 13.5%, respectively), under identical conditions”.
The authorities established Novo Banco in 2014 to assume part of Banco Espírito Santo's (BES) banking operations following the latter's resolution.
Since 2017, when Lone Star bought Novo Banco, the Bank Resolution Fund has injected €3.405 billion into the bank, generating extensive political and media discussion.
The early end of this mechanism at the end of 2024 means it is possible to sell Novo Banco and for it to pay dividends now.
Lone Star has announced plans to sell part of the bank on the stock exchange this year, along with a dividend distribution plan, to make the institution more attractive to investors.
PD/ADB // ADB.
Lusa
