October 18, 2016 / 9:50 AM / in a year

Portugal's bcp calls rights cap vote, seen helping Fosun's offer

LISBON, Oct 18 (Reuters) - Portugal’s largest listed bank Millennium bcp has called a shareholder meeting on Nov. 9 to vote on raising the voting rights cap to 30 percent from 20 percent - a key condition of an offer by China’s Fosun to take a large stake in the bank.

The bank said the proposal to increase the limit was put forward by its four main shareholders, Angolan oil company Sonangol, Spanish bank Sabadell, Portugal’s EDP utility and Angolan-Portuguese holding Interoceanico, wseen as a sign that they all agree.

The bank’s shares rose over 3 percent in early trading on Tuesday to 0.0161 euros.

“This is the reaction to the summoning of the shareholder meeting, which facilitates Fosun’s entry, so the stock has gotten out of the lethargy of the past few weeks,” said Paulo Rosa, a trader at Go Bulling brokers in Porto.

Fosun Group, China’s biggest private conglomerate, in July made a firm offer to buy a 16.7 percent stake in Millennium bcp via a dedicated capital hike with a possible further increase of the stake to up to 30 percent. The bank’s board has welcomed the offer and is negotiating with Fosun.

The proposed deal should be a welcome boost to bcp’s capital, which along with other Portuguese banks has been a cause of concern to investors as the country’s banking system, saddled with debt and bad loans, is still reeling from two bank rescues by the state in 2014 and 2015.

Reporting By Sergio Goncalves, writing by Andrei Khalip Editing by Jeremy Gaunt

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