July 19, 2024 | 12:55

Bilbao

BBVA announces extraordinary meeting to merge with Banco Sabadell

BBVA announces extraordinary meeting to merge with Banco Sabadell

Jeickson Sulbaran

May 31, 2024 | 10:15 a.m.

The importance of the capital increase in BBVA's acquisition strategy

I live in Bilbao and like many of my fellow citizens, I am attentive to the economic and business fluctuations that directly affect our region and, by extension, our daily lives. On July 5, an extraordinary general meeting will be held at the Euskalduna Palace, a key event for the financial future not only of BBVA but also of Banco Sabadell. This meeting has one main objective: to approve a capital increase that allows a share exchange to be carried out, crucial for the hostile takeover bid (OPA) that BBVA has launched on Sabadell.

This strategic move involves the issuance of up to 1.126 million new shares, each with a nominal value of 0,49 euros. The interesting thing about this operation is that it will not require an additional outlay by current BBVA shareholders, since the expansion will be financed through non-monetary contributions. The process is designed to facilitate the exclusive exchange with Sabadell shareholders who decide to accept the takeover bid., marking a significant step in Spain's banking consolidation.

Projected benefits of the exchange for Sabadell shareholders

From a value perspective, BBVA has put forward an offer that seems quite attractive. Proposes an exchange of 4,83 Sabadell shares for each new BBVA share. This arrangement not only reflects a considerable premium over current market values, but also suggests increased value for Sabadell shareholders, projecting a 16% stake in the resulting conglomerate. The objective is clear: strengthen BBVA's position in the market while offering advantageous conditions for Sabadell shareholders, seeking a win-win result.

BBVA announces extraordinary meeting to merge with Banco Sabadell

This strategy not only redefines power dynamics within the Spanish banking sector, but also underlines the importance of Bilbao as a crucial financial center, not only for the Basque Country but for all of Spain. The merger of these entities will not only change the banking landscape, but could also act as a catalyst for more mergers and acquisitions in the sector, at a time when consolidation seems not only favorable, but necessary.

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