Banco Sabadell shareholders unanimously backed the sale of its UK subsidiary TSB to Banco Santander at a rare assembly on Wednesday.
The deal, valued at a minimal of £2.65 billion (round €3.05 billion), represents a notable acquire in opposition to the acquisition worth. In 2015, Sabadell purchased TSB for £1.7 billion, equal at this time to round €1.95 billion.
The approval of this divestment comes at a very delicate time, because the Catalan financial institution is the goal of a hostile takeover bid by BBVA. For that reason, the board of administrators wanted to acquire the express approval of the shareholders earlier than closing any strategic operation of this calibre.
TSB, targeted on the UK mortgage market, has been one of many key property in Sabadell’s defence in opposition to the proposed hostile takeover.
The sale of TSB is a part of Sabadell’s technique to strengthen its unbiased place within the face of the takeover bid launched by BBVA. By divesting TSB, the Catalan financial institution seeks to scale back its worldwide publicity, simplify its construction and generate liquidity to remunerate its shareholders.
The plan contains a rare dividend of €2.5 billion in 2026, which should be authorized this afternoon, plus further abnormal funds.
This will increase the attractiveness of sustaining the financial institution as an autonomous entity and complicates BBVA’s takeover try.
The proposed acquisition has sparked political controversy in Spain and in Brussels. Final month, the European Fee despatched Spain a authorized warning after the federal government sought to impose circumstances on the merger.