Private equity firm Lone Star is nearing a long-anticipated exit from Novo Banco, its Portuguese banking asset, with French lender BPCE and Spain’s CaixaBank emerging as final bidders, according to a report by Bloomberg citing unnamed sources familiar with the matter.
The sale process – managed by Deutsche Bank – is progressing in parallel with an IPO option still under active consideration. A preliminary decision between the strategic sale and a potential public listing could come as soon as this week.
Lone Star owns a 75% stake in Novo Banco, which it acquired in 2017 as part of a post-crisis restructuring deal. The remaining 25% is held by the Portuguese state via its Resolution Fund. Analysts at JB Capital have estimated the lender’s valuation in the range of €5.5bn to €7bn.
If the IPO route is chosen, Novo Banco could mark Portugal’s largest public offering in nearly two decades, with the government previously signalling that up to 30% of the bank could be floated. Bloomberg has reported the offering could raise over €1bn, with Bank of America, JPMorgan, and Deutsche Bank lined up as global coordinators.
Novo Banco, the country’s fourth-largest lender, has undergone a major turnaround since its creation from the ashes of Banco Espírito Santo. Following years of deleveraging and asset sales, the bank posted its first annual profit in 2021 and has since benefited from higher interest rates, boosting its net interest income.
