It pays approximately 1,400 million euros to acquire an additional 36.12% of the entity
BBVA succeeded in acquiring 85.97% of its Turkish subsidiary Garanti following the closing of the voluntary takeover bid made by the Spanish group on the 50.15% it did not yet own in the entity. Finally, BBVA acquired a further 36.12% after a payout of 22,758 million lira (1,410 million euros), after increasing the price per share of the offer from 12.20 to 15 lira per share.
In total, approximately 3,220 shareholders have joined the operation, who own approximately 1,517 million shares of the bank.
According to the statement sent to the CNMV, the operation has a negative impact on the Common Equity Tier 1 ratio (“fully loaded”) of approximately 23 basis points.
The board of directors of BBVA agreed on November 15, 2021 to launch a voluntary takeover bid for the 50.15% over which it did not control Garanti, although the acceptance period did not begin until April 4.
Initially, the acceptance period lasted 20 business days, until April 29, although BBVA eventually announced a two-week extension of the deadline, until today, May 18.
In a press release, BBVA points out that its entry into Garanti took place in 2011, when it bought 25.01% of this Turkish entity from Dogus and General Electric. Later, in 2015, BBVA became the first shareholder and increased its stake to 39.90% through the purchase of an additional package of shares of Dogus, and in 2017 it increased its stake to 49.85%.
The entity continues to bet on Turkey despite the doubts that exist about the country’s economy due to high inflation and periods of sharp declines in the local currency. BBVA’s CEO, Onur Genç, pointed in the latest presentation of the results to the possibility that the bank could begin to apply the hyperinflation accounting model to Turkey, as it is already doing in Argentina and Venezuela.
However, the bank defends investments in Turkey, as “it has become a strategic market for BBVA.” “With a market share of almost 20% among private banks, in both Turkish lira lending and deposits, Garanti BBVA is the best bank in the country with proven resilience and the ability to generate results even in highly complex environments,” they say. . indicate from the entity.
At the end of March 2022, Garanti had 21,680 employees, 5,606 ATMs and 1,003 branches.
Source: La Verdad

I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.