Spanish bank BBVA has revised its acquisition offer for local peer Banco Sabadell, proposing a 10% increase from its previous offer.
The updated offer translates to one new BBVA share for every 4.8376 Banco Sabadell shares.
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This new all-share offer is designed to be tax neutral for shareholders, provided that more than 50% of Banco Sabadell’s voting rights are accepted.
In a statement, BBVA said that the new offer values Banco Sabadell shares at €3.39 per share, the highest valuation in over a decade. The current value of the offer has also increased by 60% since April 2024, the day before the merger talks were announced, rising from the original €12.2bn to €19.5bn.
BBVA CEO Onur Genç said: “Banco Sabadell shareholders who accept the offer will be part of a bank with a much higher potential of growth and value creation, with an ability to achieve 41% higher earnings per share than they would obtain otherwise. We invite them to join us in building a project that will bring significant benefits to customers, employees and shareholders of both entities and to society as a whole.”
Banco Sabadell shareholders are poised to gain a 15.3% stake in the merged entity, under the new offer.
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By GlobalDataSpanish securities commission CNMV’s approval of the improved offer is pending, after which the take-up period will recommence.
BBVA Chair Carlos Torres Vila stated: “With this improved offer, we are putting an extraordinary proposal in the hands of Banco Sabadell shareholders —one that combines a historic valuation and price with the opportunity to participate in the substantial value generated by the integration.
“All of this will result in a significant increase in the expected earnings per share in the future, if they tender their shares.”
Earlier in the month, Banco Sabadell’s board advised its shareholders to reject BBVA’s initial share exchange offer, citing an undervaluation of the bank and its prospects.
In June, the Spanish government stipulated a minimum three-year waiting period before the two banks can consolidate their operations if the acquisition proceeds.
