BBVA Gets Shareholder Approval for Capital Increase for Sabadell Takeover
By Elena Vardon
Banco Bilbao Vizcaya Argentaria's shareholders approved the Spanish lender's capital increase to fund its $12 billion-plus hostile takeover of smaller rival Banco de Sabadell.
BBVA shareholders voted in favor of issuing 1.13 billion new shares, which the bank intends to offer to Sabadell shareholders, voting results at BBVA's extraordinary general meeting showed on Friday. The newly issued shares are worth 10.82 billion euros ($11.70 billion), based on Thursday's closing price of EUR9.61.
In May, BBVA went directly to Sabadell shareholders with an offer to buy the bank, days after Sabadell's board rejected an approach which it said undervalued the group and its prospects.
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. BBVA's Chairman Carlos Torres Vila has described the offer as unstoppable.
The value of a potential transaction has since fluctuated given that the all-share deal is tied to BBVA's stock price.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
July 05, 2024 06:58 ET (10:58 GMT)
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