Spanish Banco Sabadell buy British TSB for £ 2,350 … – Terra Colombia

The Spanish bank Sabadell buy the British bank TSB by 1,700 million pounds (2,350 million euros, 2,500 million), and thus enter fully into the market of commercial banking in the UK.

In a statement from both companies, explained that Banco de Sabadell offers 340 pence in cash for each share of TSB, ie 29% more than the closing price of the title on March 11, the day before it was disclosed information on this project, and 4% higher than the closing price on Thursday.

The offer values ​​TSB 1,700 million pounds, They pointed both groups in a statement posted on the website of the stock London.

Half TSB belongs to the British group Lloyds Banking Group, which has agreed to sell its stake. Lloyds sell nearly 10% stake in TSB to Sabadell until March 24, and the remaining 40% later.

This takes you to the operation about 850 million pounds, and fulfill its commitment yielding TSB agencies, adopted at the European Commission in exchange for their rescue by the British government during the financial crisis that began in late 2008.

The board of directors has decided to recommend TSB its other shareholders accept the offer of Banco de Sabadell, which considers “just and reasonable”.

On the side of Sabadell, this acquisition will enable implanted in commercial banking in the UK, following the footsteps of his compatriot Banco Santander. This market has traditionally been dominated by the “big four”, Barclays, HSBC, LBG and Royal Bank of Scotland, all British.

“Sabadell considers that the British banking market, particularly the commercial banking and small and medium enterprises, has a precise and stable regulatory framework, and provides a stable and profitable growth prospects, “said the Spanish entity.

The company added that TSB is growing well capitalized, with 19.7% of “Tier 1 capital” hard core equity.

The company, based in Catalonia and fifth Spanish bank by market value, will take a big step in international expansion. With this acquisition, its share of foreign assets will increase from 5% last December to 22%.

TSB manages about 630 agencies in the UK, and was introduced on the stock exchange in June 2014 by Lloyds Banking Group, which is then retained a share of 61.5%, and then decreased to 50% in September.

A few minutes into the session at the London Stock Exchange on Friday, the action of TSB was up 1.7% to 333 pence.

In Madrid, the action Sabadell was up 0.36%, to 2,217 euros