BBVA changes its bet to take over Sabadell. The bank chaired by Carlos Torres announced on Tuesday that it was reducing its share exchange offer against the Catalan bank but adding cash payment, an option that the entity chaired by Carlos Torres had initially rejected to take over Sabadell.
BBVA indicates in a press release sent to the CNMV that it “announced the payment to its shareholders on October 10 of a dividend on the results for the year 2024 in the amount of 0.29 euros per share”. This increase in payment to BBVA shareholders will mean that “as of next October 10 (date of payment of BBVA’s interim dividend), the consideration offered by BBVA to Banco Sabadell shareholders as part of the Offer will increase to achieve one (1) newly issued ordinary share of BBVA and 0.29 euros in cash for each five point zero one nine six (5.0196) ordinary shares of Banco Sabadell.
BBVA had proposed to Sabadell an exchange of one of its shares for 4.83 shares of the Catalan bank, assuming that no distribution of dividends, reserves or other distributions would be made by any of the companies to their respective shareholders.
With the policy of increasing dividends that Sabadell initiated as a defensive strategy against the takeover bid, BBVA justified its movement “by the consequence of the interim dividend for the year 2024 in the amount of 0.08 euros per action paid by Banco Sabadell”.
“The consideration offered by BBVA to the shareholders of Banco Sabadell in connection with the Offer becomes one (1) newly issued ordinary share of BBVA for each five point zero one nine six (5.0196) ordinary shares of Banco Sabadell”, adds the Basque bank in its press release. statement.
According to BBVA, “these adjustments, provided for in the previous announcement of May 9, 2024, aim to maintain the economic conditions of the offer equivalent, after payment of dividends by the two entities”. BBVA closed this Tuesday with a price of 9.3 euros per share (9.6 euros on May 9, 2024), after a drop of 4.20%, while Sabadell closed with 1.78 euros per share (same value than May 9, 2024), after collapsing by 6.5%.
