The CNMV will accept BBVA’s takeover offer prospectus for Sabadell for processing next week.

The National Securities Market Commission (CNMV) will allow for processing next week the prospectus of BBVA’s takeover bid for Banco Sabadell, with which the Basque entity wants to gain control of the Catalan company for its subsequent merger, provided that the supervisory authority does not require additional information.

BBVA formally submitted the request on May 24. with which he hopes to obtain CNMV approval for an operation in which It offers Sabadell shareholders an exchange of securities at a rate of one from BBVA for every 4.83 from the Catalan bank.

From this date, the CNMV has a period of up to 10 calendar days. accept a brochure for a processing operation that will end early next week, unless the manager asks BBVA for clarification.

In this case, the process will be delayed since the bank will have to send the information requested by the CNMV and the supervisor, once it receives it, will again have a new period of 10 calendar days to study it before accepting the prospectus for processing.

In parallel and in order to gain time, BBVA has already called an extraordinary meeting for July which it will offer its shareholders the capital increase necessary to carry out a hypothetical share exchange with Banco Sabadell.

BBVA’s board of directors decided to submit a takeover bid for Sabadell on May 8. and he announced this publicly the next day, when he explained that the offer was made so that the shareholders of the Catalan bank could choose.

The same week, the highest governing body Sabadell rejected a purchase offer put forward by BBVA on the same terms.The argument was that they saw greater potential in the bank alone than as part of the BBVA group.

Following this second failed merger attempt, following the first one undertaken at the end of 2020, BBVA decided to submit a takeover offer with an exchange ratio for Sabadell shareholders that was equivalent to 50% of the listing price as of mid-April and close to 30% of the exchange price. the day before BBVA’s interest in Sabadell became known, reports Efe.

After announcing the takeover bid on May 9, BBVA had a period of up to 30 days to request permission from the CNMV. although the bank president Carlos Torres, It was announced that they would do this, presumably in two weeks, which eventually happened.

From now on, the CNMV will have a period of 10 calendar days to decide whether to admit it to processing, and will then study the terms of the prospectus sent by BBVA for the takeover bid before approving it.

The comptroller of the stock market warned that verification of the information could take more than two months. before greenlighting a takeover bid and waiting European Central Bank (ECB)which is strictly necessary.

Once the transaction has received regulatory approval, BBVA can submit a takeover bid, even if the National Markets and Competition Commission (CNMC) has not expressed an opinion or imposed conditions.

If you continue with your offer, BBVA will have to give Sabadell shareholders a period of 15 to 70 days to decide whether to sell their securities.

If the offer is successful and BBVA obtains more than half of Sabadell shareholders willing to sell, The bank may put forward its final idea to merge both companies, which will be subject to the conditions set by the CNMC and the approval of the Ministry of Economy.

Since BBVA announced its takeover bid for Sabadell, The government publicly opposed the operation. and the Minister of Economy, Carlos Bodiewho rejected the proposal, warned that the final word on the merger rests with the manager and, in particular, with him.

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