Chinese company Fosun announced on Monday that it would be investing another €400 million to increase the capital of Portuguese bank BCP Millennium to €1300 million, and almost immediately the bank’s share price took a 15% dive, reports Jornal Económico this morning.
Fosun, meantime, has “reinforced its position” at the bank from 16.7% to 30% which means, say reports, that it is now the largest shareholder in the institution.
Part of the increase in capital will be going to reimburse the State with €700 million in Coco’s (convertible bonds).
As Dinheiro Vivo explains, this is the sixth time the bank run by Portuguese Nuno Amado.
has called for an increase in capital since 2008, during which time €5.77 billion has been ploughed into it.