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

MADRID (Reuters) – CaixaBank (MC said Monday it will launch a bid for the 55.9 percent stake in Banco BPI (LS at a cash price of 1,113 euros per share again 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 and shareholders Portuguese bank approved at board removal limit voting rights of 20 percent.

the Spanish bank took months negotiating an agreement that would have involved the purchase of 18.6 percent of BPI Dos Santos, where CaixaBank saw limited their voting rights by the opposition of the Angolan entrepreneur.

a week ago, just as I had a deadline for BPI deshiciese their risky Angolans assets in response to a new European rules, CaixaBank and BPI announced that negotiations had been completed “successfully”, without giving further details.

the agreement would have also meant the purchase by the Angolan businesswoman 50.1 percent it does not control entity in the Angolan BFA and is held by BPI.

consulted sources had indicated to Reuters that at this point had been difficulties since Dos Santos claimed that BFA so listed on the Lisbon stock exchange.

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

at 09.08 hours, CaixaBank shares fell 3.1 percent traded, while BPI was suspended, after a final price of 1,191 euros on April 8.

the Catalan bank will offer at 10.00 a conference to explain the operation.

IMPACT iN 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 a percentage of BPI share of between 51 percent and 70 percent, respectively).

This would reduce the ratio CET1 fully loaded to 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 a ratio of fully Capital loaded CET1 than 11 percent after the transaction, according to the objectives 2015-2018 strategic plan.

CaixaBank also said it expected revenue synergies of 35 million euros a year with operating and cost synergies of about 85 million euros from the third year, while who encrypted the restructuring costs at about 250 million euros

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