Today, BBVA pays 1,700 million the largest interim dividend in its history.
BBVA today paid its shareholders €1,700 million in dividends, the largest milestone payment in its history.with remuneration of 0.29 euros per share. This payment will also be extended to Sabadell shareholders who accept the acquisition offer.
The gross dividend of €0.29 per share represents an increase of 81% compared to the dividend paid in the previous year.. After tax withholding is applied, the net payment will be €0.2349 per title. Since 2021, BBVA has allocated €15 billion for dividends and share repurchase programs.
BBVA’s remuneration policy is based on “payout” from 40% to 50% of your profitThis means that the company distributes this percentage to reward its shareholders, either through cash dividends or share repurchases. In addition, the company has committed to distribute any excess capital in excess of 12% CET1.
This payment strategy occurs in two phases: a milestone payment, usually in October, and an additional payment, usually in April. In addition, BBVA has carried out extraordinary share buybacks in recent years.
The company underlined its strong commitment to creating shareholder value, saying that since January 2019, overall shareholder return, taking into account both share price performance and dividend distributions, has nearly tripled (+186%).
In the midst of a takeover bid for Sabadell
This payment comes as part of the public acquisition offer (OPA) that BBVA has launched to acquire 100% of Sabadell. Under the terms of the proposal presented in May, BBVA will adjust the terms for Sabadell shareholders depending on the distribution of dividends.
Recently, BBVA announced that it would add a cash payment to the offer for those who sell their Sabadell shares.while the share swap was adjusted to result in an interim dividend of €0.08 per share, implying a payment to Sabadell of €429 million paid on 1 October.
Prior to these adjustments, the takeover offer offered an exchange of one new BBVA share for every 4.83 Sabadell shares. However, after the recent payment, the exchange fee will be €0.29 in cash per share plus one BBVA share for every 5.0196 Sabadell shares.
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