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Bond Market News
BBVA Tweaks $13.4bn Sabadell Offer to Include Dividends
October 3, 2024
BBVA has tweaked its $13.4bn takeover offer for Sabadell to account for the recent interim dividend payments by both the banks. The adjustment has been made to maintain the economic terms of the bid. Following Sabadell’s interim dividend payment of €0.08/share, BBVA’s new offer now stands at one newly issued share for every 5.0196 shares of Sabadell. BBVA also plans to pay its own interim dividend of €0.29/share on October 10, which will lead to a further adjustment of the offer to include this cash component. Brokers estimate that the cash component of about €310mn ($342mn) of the offer, will impact BBVA’s capital ratio by an additional 7-8bp, on top of the previously announced 30bp impact. The bid was originally launched in May which soon turned hostile as Sabadell rejected the offer. Earlier, in September BBVA announced that it had received the ECB’s approval for its Sabadell takeover bid. However, it still needs the approval of Spain’s antitrust watchdog CNMC and its stock market supervisor for the bid to go through.
BBVA’s 6.5% Perp traded stable at 100.1 cents on the dollar, yielding 6.25%.
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