The shareholders of the Spanish bank BBVA On Friday they validated the group’s capital increase necessary to support the Public Takeover Offer (OPA) hostile towards its rival Sabadell, an operation that the Government opposes.
Shareholders gave the green light to the capital increase by an overwhelming majority of 96% at an extraordinary general meeting, the second largest Spanish bank announced in a statement, which welcomed this “a very important step”.
This measure will allow the issuance of a maximum of 1.126 billion new shares worth 0.49 euros, which represents a potential capital increase of 552 million euros (about US$ 600 million).
The final amount will depend on the number of shareholders. Sabadell to accept the takeover bid.
The capital increase was necessary for BBVA to be able to finance its offer, announced on May 9, since the operation is to be carried out through the exchange of shares (one new BBVA share for 4.83 Sabadell shares) and not in cash.
“We are fully confident in the success of this operation, which is a clear commitment to Spain and its SMEs. The merger with Banco Sabadell will result in a stronger and more profitable entity, with greater capacity to support families and businesses”said BBVA Chairman Carlos Torres, quoted in the statement.
“BBVA shareholders will achieve high returns on investment with limited capital consumption” and those of the “Sabadell will receive a very attractive premium and a 16% stake in the entity resulting from the merger”the text explained.
The hostile takeover bid, which is expected to be launched by a European banking giant, is rejected outright by the leaders of Sabadell, the country’s fourth-largest bank, which had already rejected a merger with BBVA in 2020.
It is also opposed by the government of socialist Pedro Sánchez, who fears that this merger will reduce competition in the sector and harm consumers.
The executive will have “the last word” Regarding the operation, the Minister of Economy, Carlos Cuerpo, warned weeks ago.
Source: Gestion
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