On 5 September, a group of former ESFG (Espírito Santo Financial Group) shareholders – who believe they were harmed by the sale of the company – initiated a civil case against Tranquilidade, a sub-holding insurance company that formed part of Espírito Santo Financial Portugal and is to be sold to the Apollo Global Management fund, the US private equity fund manager.
A precautionary proceeding is also being prepared by the same group of shareholders aimed at preventing the sale.
This is the first known civil action to be brought against Tranquilidade, remnant of Banco Espirito Sanco and now part of Novo Banco S.A, related to its sale to Apollo fund. Following its collapse, Banco Espírito Santo was spilt into a “good bank” – Novo Banco - and a “bad bank”.
ATM, the Portuguese Investors Association and member of BETTER FINANCE and Euroshareholders, supports this case and believes the legal action is likely to be resolved swiftly and efficiently to allow for a more constructive restructuring of Novo Banco. ATM believes this is very important initial step towards the restoration of lawfulness in the demerger process of Banco Espírito Santo.
Please find more information (in Portuguese) here.