Angola brings oil firm Sonangol into local BES bank

LISBON (Reuters) - Angola's central bank has brought in state oil company Sonangol as a shareholder in the rescue of the BES Angola (BESA) bank, despite the objections of BESA's former parent, Portugal's bailed-out lender Banco Espirito Santo (BES). National Bank of Angola said in a statement the move, which included renaming BES Angola as Banco Economico, was approved on Wednesday by the shareholders of BESA, and that BES's working successor Novo Banco would get a 9.9 percent stake as previously announced. The central bank did not say what stake Sonangol will have in Banco Economico nor indicate the size of the bank. Some Portuguese media reports said the oil company would hold 35 percent. Sonangol, BES and Novo Banco officials were not immediately available to comment. But BES, the "bad bank" that inherited the problematic assets of the original Banco Espirito Santo -- from which Novo Banco was carved out and capitalised by the Portuguese state in August -- said it will not accept the shareholder meeting's decisions as it was not allowed to take part. "BES considers that any decisions taken by shareholders present at the meeting are invalid and without effect, and it will act accordingly," said the bank, which insists it remains the main shareholder with a 55.71 percent stake in BESA. Last week the African nation's central bank agreed a recapitalisation plan for BESA, giving Novo Banco a 9.9 percent stake under a deal that converted part of BES' 3.3 billion euros in loans to the unit into equity. Portugal 4.9 billion-euro ($6.3 billion) rescue of BES followed the collapse of the business empire of the bank's founding Espirito Santo family. BES, which is to be wound down, retains the "toxic" exposure to family debts, with its original shareholders and junior bond holders standing to lose their investment. Around 3 billion euros of the funds injected into Novo Banco were set aside to cover the exposure to Angola, where BESA had piled up a risky credit portfolio laden with bad loans. So any recovered amount is good news for Novo Banco and the Portuguese government, which wants to sell the bank in the coming months. The Angolan deal also involved the subscription for $650 million worth of new shares in BESA by existing shareholders and new investors. Aside from Sonangol, the central bank said local company Lektron Capital took an unspecified stake in Banco Economico. Angolan company Geni, which had a 19 percent stake in BESA, remains a shareholder, it said.

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