On July 5, 2024, BBVA will hold an extraordinary shareholders’ meeting to approve a capital increase and thus move ahead with the process to purchase Banco Sabadell.
BBVA Chair Carlos Torres Vila spoke to the bank’s shareholders today. In his message, he emphasized that the operation “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 Banco Sabadell shareholders 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 larger scale will allow the bank to face the structural challenges of the financial sector in better conditions, addressing in an efficient manner the rising needs for investments in digital transformation in an increasingly global sector.
BBVA has proposed to Banco Sabadell shareholders the exchange of one new BBVA share for every 4.83 shares of Banco Sabadell.
The capital increase will take place by issuing new ordinary BBVA shares with no preferential subscription rights and with no need for BBVA shareholders to make any disbursements, as these shares will be allocated to Banco Sabadell shareholders who accept the purchase offer. The final amount of the capital increase will therefore be subject to the number of acceptances of the offer by Banco Sabadell shareholders.
BBVA Chair commented:
“This transaction will create value for all of you, the BBVA shareholders, as it will create a stronger and more competitive bank, as well as an estimated increase in earnings per share of around 3.5 percent (once the savings associated with the integration have been realized), and a limited estimated impact on the CET1 capital ratio of 30 basis points.”
