Sale of Banif’s NPLs and Properties to Altamira Awaiting BdP’s Approval

18 October 2017

Oitante’s sale of its credit and real estate management business has not been finalised yet because it lacks the Bank of Portugal’s approval

Despite having been announced in April, Oitante’s sale of its property and credit management business to Proteus (a company owned by the Spanish group Altamira) still hasn’t been finalised. This is due to the requirement that requires a prudential analysis before the sale of any asset management firms in Portugal.

Banco de Portugal is the institution in charge of the analysis. The Securities Exchange Commission (CMVM) needs a decision from the Bank of Portugal before it can make a pronouncement.

Credit management is not subject to registration with the CMVM. The sale of Oitante’s assets cannot be finalised despite having received authorization from the Competition Authority, the Ministry of Finance, the European Commission’s Directorate-General for Competition, the Court of Auditors and the Oitante’s Audit Committee.

The fact that the deal is a three-part operation is the cause of the delay. The agreement must pass through two acquisition operations. The first is the transfer Oitante’s assets to Profile – Investment Fund Management Company (formerly Banif Gestão de Activos – SGFIM). This process requires the prudential assessment by the Bank of Portugal. After that is completed, then the assets will be sold to Proteus, a Portuguese company owned by Altamira, which will then begin operations in Portugal. The Spanish company has been waiting for six months to finalise an operation that was agreed to in April. At that time, Oitante, which took over the assets that were left over after Santander Totta’s acquisition of Banif’s assets, announced that it had agreed with Altamira, an asset manager owned by the U.S.-based Apollo fund (85%) and Santander (15%).

In practice, two deals were announced: the sale of the credit and real estate management firm and in a service agreement after that Altamira will be responsible for managing and selling real estate and distressed debts valued at 1.5 billion euros, which remain on Oitante’s balance sheet.

On September 11, the Competition Authority announced that it was notified of Proteus’ intention to take over Oitante’s real estate credit and asset management business. The Authority subsequently authorised the deal.

Proteus is 100% owned by Altamira Asset Management, a real estate asset management and distressed debt management entity in Spain, which is controlled by funds managed by Apollo, which in Portugal is mainly present in the insurance business through United Insurers. Proteus is a company that is primarily dedicated to the management of real estate loans and portfolios.

Original Story: Jornal Econômico – Maria Teixeira Alves

Translation: Richard Turner