Oitante failed to sell Banif in Brazil

Portuguese bank Banif failed to sell its banking interests in Brazil after a deal with one of São Paulo’s most successful lawyers Siqueira Castro fell through.

Now the company that owns Banif, Oitante, is in negotiations with a Brazilian credit institution which is interested in the tax credits that Banco Banif Brasil holds.
The difficulties in selling the Brazilian bank, which is in the hands of receivers, were revealed in a report from the Banif Insolvency Commission for 2020. The sale fell through after the lawyer suggested a third investor for the business.
The Commission states: “following various failed attempts to sell Banco Banif Brazil a contract programme was drawn up with a view to sell the bank by concluding a Buy and Sell Contract Option for the whole capital share of Banco Banif Brasil – in an orderly liquidation, with Dr. Siqueira Castro”. (The senior partner of one of the largest law firms in São Paulo)
This option contract was “signed on 28 January 2019 at the same time as various other subordinated contracts for Banif Brasil which belongs to companies controlled by the Oitante group”.
The Commission recognised: “Initially, the prospect of the acquisition of the bank by Dr. Siqueira brought some benefits to Banco Banif Brasil, namely through a loan made by his holding Azevinho which enabled the necessary payments to be made so that the bank could sign up to a Tax Settlement Programme and sort out some of its significant fiscal liabilities”.
However, with the general economic situation deteriorating in 2020-2021, it was decided to sell the bank, and on November 12, 2021, a purchase and sale contract was drawn up for the sale of Banco Banif Brasil, accompanied by a thorough due diligence.
However, the result of the deal continues to be uncertain taking into account that fresh tax liabilities have arisen, which were unknown to the Commission, and which specifically involve companies controlled by Banco Banif Brasil and for which it is responsible.
Banif, the Madeira bank founded by Horácio Roque was subject to a bankruptcy order on December 20, 2015. The banking sector’s Resolution Fund lent the bank €489 million to absorb losses and guarantees for the issuance of bonds by Oitante. (the company created that same year)
Oitante S.A. is a private entity whose creation was decided by the Financial Supervisory Authority, (Bank of Portugal) and whose goal is to manage the rights and obligations of Banif’s assets.