BBVA Calls Shareholder Vote on Capital Increase for $12 Billion Sabadell Bid

By Adria Calatayud

Banco Bilbao Vizcaya Argentaria called a shareholder meeting to vote on a proposed capital increase tied to its $12 billion-plus all-stock hostile bid to take over smaller rival Banco de Sabadell.

BBVA, Spain's second-largest bank by assets, said Friday that it is proposing a capital increase of up to 1.13 billion new shares to proceed with the offer. Based on BBVA's closing share price on Thursday, the shares would be valued at 11.23 billion euros ($12.17 billion).

The newly issued BBVA shares will be given to Sabadell shareholders who take up the offer and the final amount of the capital increase will depend on the number of acceptances the bid gets, BBVA said.

The extraordinary meeting is scheduled for July 5, BBVA said.

Earlier this month, BBVA launched a hostile takeover bid for Sabadell, days after Sabadell's board rejected an offer on the same terms. BBVA's offer valued Sabadell's shares at EUR2.12 each, implying a total value of EUR11.53 billion, based on the average price of the quarter prior to the announcement.

Because the deal is tied to BBVA's share price, its value has fluctuated since it was first unveiled.

Last week, BBVA filed an application with Spain's stock-market regulator seeking authorization for the bid.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

May 31, 2024 02:20 ET (06:20 GMT)

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