Sabadell’s board of directors met Monday to review BBVA’s offer. This is the second time that it has rejected the merger with BBVA.
Banco Sabadell has rejected the offer made last week by BBVA to merge both entities, saying it “will alone generate more value”, as the entity told the National Securities Markets Commission (CNMV). It is the second merger offer that the Catalan entity has rejected.
In concrete terms, Sabadell’s board of directors, which met this Monday to assess BBVA’s offer, based this decision on the view that it can create more value for the shareholder if left alone.
Last Wednesday, BBVA announced its formal proposal for Sabadell in which it proposed an exchange of 1 newly issued BBVA share for every 4.83 Sabadell shares, at a 30% premium above the value at which Sabadell listed on Monday, April 29.
This offer valued Sabadell at approximately EUR 11 billion, after the price at which BBVA closed today of EUR 9.84 per share. It in turn implies an increase in the value of the share in Sabadell to 2.2 euros – currently trading at 1.89 euros per share -, taking into account the 30% premium.
After this exchange, BBVA was prepared to issue shares worth 1,126 million euros, representing 20% of its market capitalization.
Source: EITB
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