Banif Malta sale to Omada Capital tagged at €25 million

Portuguese commercial bank Banif Bank (Banco Internacional do Funchal), is selling its unit in Malta for €25 million to UK investment manager Omada Capital, Mergermarket reported on Tuesday, citing a source familiar with the matter.

Banif Financial Group of Portugal has been in the process of selling its majority stake in Banif Malta since May 2014, in line with the conditions dictated by an EU bailout agreement sealed in 2013 with Portugal. This state aid agreement obliges the group to sell all its overseas investments, not only in Malta but in other countries including Brazil.

Bank CEO Silva Pinto insisted the sale of shares would not have any impact on the bank’s operations, its management structure, the staff or customers’ savings, adding that their intention was for the bank to grow further.

Omada, which was advised by KPMG, will cover the purchase price through a mixture of cash and equity, the source said.

The new owner of Banif Malta intends to provide between €20 million and €25 million in fresh capital to help the business expand its European business lending operations.

The parties are awaiting clearance from local and EU regulators, Mergermarket was told.