Particle.news

Download on the App Store

Sabadell Sells TSB to Santander and Unveils €3.8 Billion Dividend to Counter BBVA Bid

The sale of TSB funds a €3.8 billion dividend that fortifies Sabadell’s defense, forcing BBVA to reassess its offer under a three-year autonomy requirement.

Archivo - Fachada de la sede de BBVA, a 26 de septiembre de 2024, en Madrid (España).
El conseller Dalmau y el president Illa el martes en el pleno del Parlament.
Archivo - Logo de TSB.

Overview

  • Banco Sabadell agreed to sell its UK arm TSB to Banco Santander for £2.65 billion after considering rival bids from Barclays and others.
  • Proceeds from the transaction will finance a €3.8 billion dividend payout over the next 12 months to entice shareholders to reject BBVA’s hostile offer at an August 6 vote.
  • BBVA’s board unanimously opted on June 30 to continue its takeover bid despite government rules mandating separate governance, and it has revised its synergy estimates accordingly.
  • Legal experts warn Sabadell’s sale could breach its takeover duty of passivity under Spanish regulations, potentially requiring explicit shareholder approval.
  • Following the announcement, Sabadell’s shares jumped about 3% and BBVA’s stock rose roughly 1.4% in early trading on July 2 as markets digested the defensive strategy.