Caixabank will sell 10% of their capital to be strengthened before the tender offer on BPI – Investing.com Spain

MADRID (Reuters) – Caixabank (MC:) said on Thursday that it will conduct an accelerated placement with institutional investors of 9.9 per cent of its own shares to strengthen their capital before the take-over bid that is going to launch soon by the Portuguese bank BPI (LS:).

The 9.9 per cent of Caixabank, which has in shares, is valued at around included 1,372 million euros, according to the price at which it was suspended action on Thursday (2,346 euros per title) for the supervisor of stock before the announcement.

The Catalan entity said that institutional investors have made an indication of interest is not binding, for a total amount of about 380 million euros in order to participate in the sale, which is underwritten by JP Morgan (NYSE:) u.s. Securities and Morgan Stanley (NYSE:), the banks underwriters.

Caixabank said that the reason of the operation resides in that its ratio of capital 1 ordinary (CET1) “fully loaded”, an important measure of solvency in the sector, is going to be situated after the take-over bid for BPI below 11 percent, compared to the group’s objective to keep it between 11 and 12 percent.

by way of example, the entity said that after the placement of the 585 million shares at an indicative price of 2,422 euros, the capital CET1 “fully loaded” of the group would be in June 2016 in 11.4-14.2 percent if after the tender offer reaches 51 per cent of the capital of BIS, compared to almost 46 per cent that it currently handles.

if it increases participation to 70 percent, the CET1 would be 11.2-14.0 per cent, and if it is a 100 percent would be 10.9-13.7 percent.

In case of accepting the offer and the 100 percent shareholder of BIS, the disbursement for Caixabank would be around 900 million euros, according to estimates from Thomson Reuters.

on Thursday, the market capitalization of BPI amounted to over 1,600 million euros, after climbing up 3.57 percent to 1,130 euros, approaching the price offered by Caixabank of 1,134 euros.

ANGOLAN

The Catalan bank announced on the evening of Wednesday the launch of the takeover bid by BPI after shareholders of the Portuguese bank to approve to eliminate a limitation of 20 percent on voting rights, one of the conditions imposed by the Catalan group to your offer.

The offer had been found up to the board Wednesday, with the opposition of the inverter angolan Isabel dos Santos, the daughter of the president of Angola, which has about 20 percent of BPI.

however, Two Saints gave its green light on the board (through abstention) to change the control of BFA, the unit angolan bank. Dos Santos will hold through one of their societies about 51 per cent of BFA (after receiving a 2 percent BPI) and the BPI will meet the european regulations for exposure to risk assets in angola.

“I Applaud the solution found to resolve the situation in BPI, which reflects the consensus of the shareholders,” he said in comments sent in an email to Reuters.

To reduce their stake below 50 per cent, the BPI will not have to consolidate BFA, the board of the Portuguese bank believes that it will allow to avoid additional provisions required by the ECB, the banking supervisor european.