Link Securities | BBVA will once again update the exchange ratio for its takeover bid for Banco Sabadell after the Catalan bank paid its shareholders a new cash dividend of €0.07 per share, according to the newspaper Expansión.
The bank will therefore change its offer from one BBVA share plus €0.70 for every 5.3456 Sabadell shares to one newly issued share of the acquiring bank plus the aforementioned €0.70 for every 5.5483 shares of the Catalan bank. The purpose of these adjustments, which have been planned since the operation was launched, is to maintain equivalent economic conditions for the offer after dividend payments by both entities.
At the time, BBVA proposed to Banco Sabadell shareholders one new BBVA share for every 4.83 Sabadell shares; subsequently, in October, it adjusted that offer and proposed a payment of €0.29 in cash and one new share for every 5.019 Sabadell shares, taking into account the dividends paid that month by both entities.
