LISBON, May 27 (Reuters) - Portugal’s Espirito Santo Financial Group will end up with a slightly smaller stake in the country’s largest listed bank BES of 25 percent after an ongoing rights issue in the lender, ESFG said on Tuesday.
“ESFG which now holds 27.4 percent of BES capital has decided to exercise its subscription rights in the offering of new shares that allows it to hold about 25 percent of BES capital” after the capital increase, it said in a statement.
The group, which is the largest shareholder in BES, also posted a first-quarter net loss of 37 million euros after a loss of 13 million euros a year ago.
The bank last week warned that the holding company Espirito Santo International, which owns ESFG, is in a serious financial situation. ESI plans to sell assets and carry out a capital increase in one or more of the companies it owns to correct the situation. (Reporting By Andrei Khalip)