Caixabank launches takeover bid for BPI after failing to agree with Dos Santos – Investing.com Spain

By Tomás Cobos and Jose Elias Rodriguez

MADRID (Reuters) – CaixaBank (MC launch a bid for the 55.9 percent stake in Banco BPI (LS at a price 1,113 cash per share after breaking an agreement in principle with the Angolan businesswoman and second shareholder of Portuguese bank, Isabel Dos Santos.

CaixaBank, which currently has 44.1 percent of BPI, said the offer was conditional on accepting more than 50 percent of the capital as shareholders Portuguese bank approved at board removal limit voting rights of 20 percent, an end which will be mandatory from 1 July.

the Spanish bank took months negotiating an agreement that would have involved the purchase of 18.6 percent of Dos Santos in BPI while the multimillion acquire the 50.1 percent it does not control the Angolan BFA entity and is held by BPI.

Sources close to the negotiations had indicated to Reuters that at this point disagreements arose as Dos Santos claimed that BFA – that of staying in BPI penalize the balance of the Portuguese entity regulatory criteria ECB – so listed in the Lisbon stock exchange.

the inability to enforce all of its share capital in the government of BPI, and led to CaixaBank to withdraw last year an offer of 1,329 euros per share to hit the rejection of Dos Santos.

CaixaBank and Dos Santos were under pressure to reach an agreement at the end of last week a deadline for the Portuguese bank deshiciese their risky Angolans assets before entering into force legislation European requiring fully provisioned such assets.

On Monday CaixaBank said “has asked the ECB suspension of any administrative proceedings against Banco BPI related to their situation of excessive concentration of risk in Angola in order to allow CaixaBank to find a solution to this situation for the case to take control of Banco BPI “.

in a conference call with analysts, CEO of CaixaBank, Gonzalo Gortázar, he said he was” confident “a positive response from the ECB and ensure that voting rights are withdrawn within BPI.

Analysts bank Haitong Research consider that “for CaixaBank acquisition would be neutral considering BPI represents only 12 percent of total assets, although we believe that the final takeover offer eliminates the risk that the bank Spanish price increases in an attempt to convince Dos Santos “.

at 09.08 hours, CaixaBank shares fell 3.5 percent on the stock market, while BPI was suspended, after a final quote 1,191 euros on April 8.

IMPACT oN cAPITAL

According to CaixaBank, offer, valuing BPI at 1,622 million euros, could erode its capital of highest quality (CET1 fully loaded) between 95 and 115 basis points (assuming an ownership interest in BPI of between 51 percent and 70 percent, respectively).

This would reduce the CET1 ratio fully loaded until 10.6 to 10.4 percent, although BPI said the impact could be mitigated with a potential divestment of the business of BPI in Angola.

CaixaBank reiterated that his goal is to maintain an equity ratio fully CET1 loaded more than 11 percent after the transaction, according to the objectives of the strategic plan 2015-2018.

To the question of how to finance the operation, Gortázar said “you can create equity in many ways”, without specifying the alternatives considered.

CaixaBank also said it expected synergies of income of 35 million euros a year with the operation and synergies of costs of about 85 million euros from the third year, while encrypted restructuring costs at about 250 million euros.

According to data CaixaBank BPI is the fifth bank by assets of the Portuguese market (40,700 million euros, of which 33,300 are in Portugal), with 596 branches and 5,899 employees in the country.

the Spanish bank estimates the closing of the transaction for the third quarter of this year, after obtaining regulatory approvals in August-September and register the offering in September.