Fosun becomes largest shareholder in Portugese lender
(25 November 2016 - China) Chinese conglomerate Fosun International bought around 17 percent of Portugal's largest listed lender, becoming the banks largest shareholder and extending the its operations in Europe and Africa.
The deal is the latest acquisition by Fosun, following those of French resort operator Club Med, Portugal's largest insurer Fidelidade and entertainment giant Cirque du Soleil.
Millennium BCP said in a statement that the Portuguese regulator had approved the offer by Fosun to acquire its 16.7 percent stake for €175 million (A$250 million).
Fosun said in a filing to the Hong Kong Stock Exchange that the deal will help it extend its business in Europe and Africa. It also confirmed the plan to increase its stake to 30 percent in the near future.
The deal will strengthen Fosun's financial capability in international commercial banking, investment banking and private banking sectors and will help it gain access to financial markets in Poland, Mozambique, Angola and Switzerland, the company said.
Fosun's investment is expected to boost the capital position and improve the profitability of Millennium BCP as the Portuguese financial sector has undergone a major transformation since the outbreak of the global financial crisis in 2008, and financial institutions have been under pressure to spin off debts and bad loans.
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