The adjustment made by the BBVA at the price of public tender offer about Bank Sabadell to collect payment dividends of the two banks, not only does this not improve the conditions of the offer for the shareholders of the Catalan bank, but this aggravates them and, therefore, increases the probability of its bankruptcy.
The bank he chairs Carlos Torres announced this Tuesday that it was modifying the conditions of the offer to adjust them to the payment of the dividend made this Tuesday by Sabadell, as well as to the shareholder remuneration that BBVA will pay on October 10.
Thus, the initial equation of a new BBVA action for each 4.83 Sabadell becomes one more new action 0.29 euros in cash for everyone 5.0196 of the bank he chairs Joseph Oliuwhich correspond to the dividend also announced yesterday by the bank of Basque origin.
At BBVA’s closing price on Tuesday at Bag9.30 euros, the initial buyback equation valued Sabadell at 9.30/4.83 = 1.9255 euros per share. With the new formula (taking the same closing of 9.30 euros), the valuation would be (9.30+0.29)/5.0196 = 1.9105. That is 0.015 euros less for each Sabadell title.
And this, taking into account that these 0.29 euros in cash are gross, that is to say that it is necessary to practice the corresponding retention of Tax authorities this leaves the amount net of the dividend in 0.2349 euros per share. If we apply the same formula to the net dividend, it would come out (9.30+0.2349)/5.0196=1.8995 euros for each Sabadell share.
As OKDIARIO announced at the time, institutional shareholders -funds investment– from BBVA refused that Torres increase the price of the public purchase offer for Sabadell, reason for which Torres always maintained that he did not have the possibility of doing so. Now it has chosen to pay part of the dividend in cash (these funds also opposed this), but in exchange for a reduction in the total price, as we have just explained.
