Sabadell, barricades against Bbva: sells Uk subsidiary, maxi-coupon to shareholders

Spanish bank Sabadell, which has been the target of a hostile takeover bid by rival Bbva for the past year, has announced the sale of its UK subsidiary Tsb to banking giant Santander for a total of €3.1 billion. "This transaction represents a strategic opportunity and is extraordinarily beneficial for the company and its shareholders, regardless of the offer" from Bbva, reads a statement from the Catalan bank, which has been trying for months to block the €14bn takeover bid launched in May 2024. Last night, Bbva said it did not want to withdraw its offer, despite the imposition of additional conditions by the government on 24 June and the indiscretions that had been circulating for days about the bid for Tsb.

 Sabadell had made official in mid-June the interest of several parties on the British subsidiary and Santander's name was already circulating, with market estimates of around EUR 2.7 billion. The sale of Tsb is seen as a defensive move on the part of the bank, which will, however, need the approval of the shareholders' meeting to implement it.

In this regard, as a result of the value generated by the transaction, Banco will propose the payment of an extraordinary cash dividend of EUR 0.50 per share, equivalent to around EUR 2.5 billion, at the general meeting to be held in Sabadell on 6 August. In a statement, Sabadell points out that 'the extraordinary dividend of around EUR 2.5 billion, combined with the ordinary dividend of EUR 1.3 billion planned for 2025 earnings, raises shareholder remuneration to EUR 3.8 billion'.