Bankinter | Shareholders have given the green light to the sale of British subsidiary TSB to Santander for €3.1 billion and approve the distribution of an extraordinary dividend of €2.5 billion by a large majority (>99.5% in both cases).
Bankinter analysis team’s view: The decision was taken on Wednesday during two Extraordinary General Meetings, and Sabadell’s share price reacted with a rise of 2% (versus 0.9% for the Spanish stock market and 2.0% for BBVA).
Sabadell is thus complying with a formal/regulatory procedure, as the most important thing is that the sale of TSB makes financial sense. We would point out that the sale price (€3.1 billion) implies valuing the British subsidiary at an attractive multiple for Sabadell (P/VC 25e ~1.5x versus ~1.3x for the SAB Group). The transaction is expected to close at the end of the year and Sabadell will distribute an extraordinary dividend of €2.5 billion in Q1 2026, equivalent to €0.50 per share, implying a cash dividend yield of 15.5% at current prices.
