On July 5, 2024, BBVA will hold an extraordinary meeting of shareholders to approve a capital increase and thus proceed with the purchase process of Banco Sabadell.
BBVA president Carlos Torres Villa spoke today with the bank’s shareholders. In his message he emphasized that the business “represents clear value creation” for the shareholders of BBVA and Sabadell, but also for customers, employees and society as a whole.
On May 9, 2024, BBVA announced its decision to make an offer to the shareholders of Banco Sabadell to acquire up to 100% of the bank’s shares.
The transaction aims to combine both banks, building a stronger and more profitable bank, and an example in the market in terms of volume of assets, loans and deposits. This greater scale will enable the bank to face the structural challenges of the financial sector in better conditions, effectively addressing the growing needs for investment in digital transformation in an increasingly global sector.
BBVA proposed to Banco Sabadell shareholders the exchange of one new BBVA share for every 4.83 Banco Sabadell shares.
The capital increase will be carried out by issuing new BBVA common shares without pre-emptive subscription rights and without the need for disbursement by BBVA shareholders, as these shares will be allocated to Banco Sabadell shareholders who accept the tender offer. Therefore, the final amount of the capital increase will depend on the number of acceptances of the offer by the shareholders of Banco Sabadell.
BBVA’s chairman commented:
“This transaction will create value for all of you, BBVA’s shareholders, by creating a stronger and more competitive bank, as well as an estimated increase in earnings per share of approximately 3.5 percent (after consolidation-related savings are realized ), and a limited estimated impact on the CET1 capital ratio of 30 basis points.’