Bank Sabadell has rejected the offer that BBVA had formulated last week to merge both entities considering that it will generate more value alone. So it The entity has informed the National Securities Market Commission (CNMV).
The board of directors of Sabadell met this Monday to evaluate BBVA’s offer. Furthermore, it has based its decision on the opinion that can create greater value for the shareholder if it remains alone.
Last Wednesday, The bank announced its formal proposal for Sabadell in which it proposed an exchange of one newly issued BBVA share for every 4.83 Sabadell shares, with a 30% premium over the value at which the company was listed on Monday, April 29. This offer meant valuing Sabadell at around 11,000 million eurosfollowing the price at which BBVA closed this Monday of 9.84 euros per title.
In turn, the offer implied raising the value of the share in Sabadell to 2.2 euros, which is currently trading at 1.89 euros per share, taking into account the 30% premium. Following this exchange, BBVA was willing to carry out a share issue of 1,126 million euroswhich represent 20% of its market capitalization.
