Portugal Mota-Engil suspends IPO of African unit on market turmoil
LISBON, July 11
LISBON, July 11 (Reuters) - Portugal's largest construction company Mota-Engil on Friday interrupted an initial public offering in its African unit after a recent deterioration of general market conditions caused by concerns surrounding the country's largest listed bank.
"We hereby announce that due to the recent significant deterioration in market conditions and the resultant impact on investor sentiment, the IPO process has been postponed, in light of the conditions of the offer," Mota-Engil said in a statement.
European and U.S. stock markets fell, and bond yields of Europe's southern nations rose on Thursday as investor fears over financial troubles at the family-owned holding companies behind Portugal's Banco Espirito Santo spilled across markets and borders.
On June 26, Mota-Engil said it was offering new stocks in its African business, to be listed in London, in the price range of 920 pence to 1,160 pence per share. (Reporting By Andrei Khalip)