MADRID – BBVA (NYSE: BBVA), the Spanish bank, raised the impact on its capital ratio to 38 basis points after it adjusted the hostile takeover offer for its smaller rival Sabadell, it said in a regulatory filing to the U.S. Securities and Exchange Commission on Tuesday.
In April, BBVA launched a more than 12 billion euro ($13.4 billion) bid for all of Sabadell’s shares, which turned hostile in May. It estimated at the time an impact of 30 basis points on its capital ratio.
“If the exchange offer is accepted by all holders of Banco Sabadell shares, the exchange offer is estimated to have an impact on BBVA’s CET1 capital as of December 31, 2024 of approximately 38 basis points, regardless of whether Banco Sabadell is merged into BBVA,” BBVA said in its filing.
BBVA (NYE: BBVA) also said its core tier-1 capital ratio was expected to remain comfortably above 12% during the potential merger process, assuming the merger was completed by June 30, 2025.
The filing comes following BBVA’s adjusted offer for Sabadell earlier this month that accounted for interim dividend payments from both lenders to shareholders to maintain the bid’s terms.
BBVA had initially offered one newly issued share for 4.83 Sabadell shares, representing a premium than of 30% over the target’s April 29 close.
Following Sabadell’s payment of an interim dividend of 0.08 euros against 2024 results, BBVA is now offering one newly issued ordinary share for 5.0196 ordinary Sabadell shares.
Since BBVA (NYSE: BBVA) paid an interim dividend of 0.29 euros per share to its own shareholders on Oct. 10, the offer was adjusted again to one newly issued ordinary BBVA share and 0.29 euros in cash for every 5.0196 ordinary Sabadell shares.
(Source: ReutersReuters)
