Spain's BBVA supports capital climb for Sabadell coup offer
Date
7/18/2024 8:51:43 AM
(MENAFN) BBVA, one of Spain's prominent banking entities, has received robust support from shareholders in a crucial move towards acquiring Banco Sabadell. At an extraordinary general meeting held in Bilbao, 96 percent of BBVA shareholders endorsed a significant capital increase necessary to facilitate the acquisition, marking a pivotal milestone in the proposed takeover.
The capital increase, approved to issue over 1.1 billion shares valued at 0.49 euros each, has the potential to raise up to 552 million euros (approximately $600 million), contingent upon acceptance by Sabadell shareholders. BBVA's bid, initiated on May 9, proposes an exchange ratio of one BBVA share for every 4.83 shares of Sabadell.
Carlos Torres Vila, Chairman of BBVA, expressed confidence in the transaction's success, emphasizing its strategic importance in bolstering Spain's financial landscape and supporting small and medium-sized enterprises (SMEs). The merger, if completed, aims to create a stronger and more profitable banking institution capable of offering enhanced services to families and businesses.
Under the terms of the offer, Sabadell shareholders stand to benefit from an attractive premium and would hold a 16 percent stake in the merged entity, reinforcing BBVA's position as a formidable competitor in Spain's banking sector. This bid, characterized as the first hostile takeover in Spain's banking sector in nearly four decades, positions BBVA to rival leading entities like Santander and European giants such as HSBC and BNP Paribas.
BBVA's pursuit of Sabadell follows earlier attempts in November 2020, which were rebuffed by Sabadell citing undervaluation concerns. Despite regulatory challenges and opposition from Spain's government citing potential job losses and reduced market competition, BBVA remains committed to realizing the merger's potential benefits for shareholders and the broader economy.
As BBVA advances towards finalizing the acquisition, the banking sector and market analysts closely monitor developments that could reshape Spain's financial industry and impact its competitive dynamics on a European scale.
MENAFN18072024000045015687ID1108454868
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.