Novo Banco explores WiZink consumer tie-up in Portugal –sources
12/12/2023 07:00
By Pablo Mayo Cerqueiro and Andres Gonzalez
LONDON, Dec 12 (Reuters) - Portuguese lender Novo Banco
is exploring a potential tie-up in Portugal with Madrid-based
consumer finance provider WiZink, two sources familiar with the
matter told Reuters.
This could result in a joint venture where Novo Banco funds
WiZink-originated loans, with WiZink owner Varde Partners
retaining some control of the new entity, one of sources said.
Novo Banco, which was born out of Portugal's failed Banco
Espirito Santo and is majority-owned by private equity group
Lone Star, is competing in the final stages of a sale process
for WiZink's Portuguese operations, the other source said.
It is being advised by Alantra Partners ALNTA.MC , said the
sources, who spoke on condition of anonymity because the
discussions are private.
There is no certainty that a deal will materialise and
another bidder may yet buy the WiZink asset, they added.
A spokesperson said Novo Banco is constantly evaluating deal
opportunities, but declined to comment on a tie-up with WiZink.
Alantra, Lone Star, Varde and WiZink declined to comment.
Reuters reported in September that Varde Partners had
appointed Deutsche Bank to review strategic options for WiZink's
Portuguese arm, which provides credit cards and smaller loans
and originates from the former local operations of Barclays.
Novo Banco was formed in 2014 through the restructuring of
Banco Espirito Santo, with the state still holding a 25% stake
in Portugal's fourth-largest bank, which says it has a market
share of nearly 10% and 43 billion euros in assets.
The Portuguese bank aims to be operationally ready next year
for a potential initial public offering (IPO), its CEO Mark
Bourke told Reuters last month.
(Reporting by Pablo Mayo Cerqueiro and Andres Gonzalez in
London; Editing by Elisa Martinuzzi and Alexander Smith)
((Pablo.MayoCerqueiro@thomsonreuters.com;))