Spain's BBVA said today that it had adjusted its takeover offer for Sabadell to take into account interim dividend payments from both lenders to shareholders in order to maintain the economic terms of the bid.
In April, BBVA launched a more than €12 billion bid for all Sabadell's shares, which turned hostile in May.
The bank had said in May, when it announced the takeover bid, it would adjust the offer later to reflect dividend payments and add a cash component.
Following the payment yesterday of an interim dividend of 0.08 euros by Sabadell against 2024 results, BBVA is now offering one newly issued ordinary share for 5.0196 ordinary shares of Sabadell, it said in a filing to the supervisor.
Since BBVA plans to pay an interim dividend of 0.29 euros per share to its own shareholders on October 10, the offer will again be adjusted to one newly issued ordinary share of BBVA and 0.29 euros in cash for every 5.0196 ordinary shares of Banco Sabadell, it said.
BBVA's offer was met by opposition from the Spanish government but was given the green light by the European Central Bank on September 5.
BBVA had initially offered one newly issued share for 4.83 Sabadell shares, representing a premium of 30% over the target's April 29 close.
As BBVA shares have fallen to €9.300 from €10.90 since the offer was first made, the premium is now around 7%, taking into account BBVA's adjusted offer.
This would value Sabadell at about €10.8 billion, Reuters calculations show.
