Renta 4 | Having obtained the necessary regulatory approvals, Sabadell and Santander have completed the sale of TSB.
On Thursday, 100% of the share capital of TSB Banking Group plc (TSB) was transferred to Santander UK plc for a total of €2.863 billion, resulting from the agreed price of £2.65 billion, adjusted upwards by £213 million due to the positive change in TSB’s VNCT between 1 April 2025 and 30 April 2026, as previously agreed.
The transaction also involves the transfer to Santander UK plc of other equity instruments and securities, not yet due, issued by TSB and subscribed by Banco Sabadell, for an amount of £1.217 billion.
It is estimated that the transaction will result in a capital gain of just over €300 million for Banco Sabadell, once all the impacts arising from the transaction have been taken into account, and will generate capital of more than 400 basis points in the fully-loaded Common Equity Tier 1 (CET1) ratio, of which 369 bps will materialise in 2026, and 36 bps associated with lower operational risk-weighted assets will materialise between 2027 and 2028.
As a result, on 29 May, an extraordinary cash dividend will be distributed, charged to freely available voluntary reserves, amounting to €0.50 per share gross, with a capital impact of 378 basis points.
Rating: Expected news; however, we do not rule out that it will have a positive impact on the share price once the date of the special dividend has been confirmed and capital gains in excess of estimates are realised.
OVERWEIGHT. Target price: €3.99 per share.
