CaixaBank improved TAKEOVER bid for BPI – The Economist

The Spanish entity would have to shell out a maximum of 900 million euros to acquire the Spanish bank.

The bank enhanced its offer 1,113 euros offered in April to acquire your competition from Portugal. Photo File: Reuters

CaixaBank has modified some of the terms of its tender Offer of Acquisition (OPA) on BIS after the shareholders ‘ meeting of the Portuguese bank’s approval this Wednesday to abolish the limits on the right to vote and that the supervisor stock luso declared mandatory offer, which until now was voluntary.

This has involved changes in the method of calculation of the OPA, which now must take into account the weighted average by volume of the quoted price of the action of BPI in the six months prior to the current date.

In this sense, the new price offered by CaixaBank is of 1,134 euros per share, around 1.8% higher than the 1.113 euros it offered in April, when it announced its intention to launch an offer for 100% of BPI, which controls 45.5 percent.

The Portuguese bank was closed in the Bag from Lisbon to 1.091 euros per share after falling 0.37 percent. This price is almost 4% lower than the one offered now by CaixaBank.

In the event that all the capital that affects the supply (54.5% that is not controlled by CaixaBank) to go to the same, the Spanish financial institution would have to disburse a maximum of 900 million euros, an amount slightly more than 883 million that would have had to pay with the previous price.

Deutsche Bank will act as advisor in the transaction, as contained in the statement sent by CaixaBank to the supervisor of stock Portuguese.

Removal of the limit of voting rights

The update of the terms of the offer occurred a few hours after the board of shareholders of ICB approved the elimination of the limit of 20% of the voting rights that the statues of the entity, unlocking has occurred, with the abstention of the second largest shareholder, the entrepreneur, angolan Isabel Dos Santos, through the company Santoro.

the BIS has offered the control of the entity angolan BFA Dos Santos in return of their approval to the removal of the limit of voting rights, a condition which had been established by CaixaBank to go ahead with its offer on the Portuguese bank.

Although CaixaBank owned more than 45% of BPI, their right to vote was limited until now to 20% by the statutes of the entity Portuguese.

CaixaBank has welcomed the suppression of the shield in BIS. The ceo of the Spanish group, Gonzalo Cortázar, has pointed out on Wednesday that this step allows CaixaBank to continue with their offer, which represents a strong commitment of investment with Portugal". And he added that they are "willing to assume control of the BIS".