Catalan Sabadell Bank approves a capital increase of €1.4 billion
The Board of Directors of Catalonia-based Banc Sabadell has approved a capital increase operation of €1.4 billion. The transaction will take place in the form of two consecutive increases in order to “strengthen capital and allow new important shareholders to join the bank aiming [to reinforce] the future internationalisation process of the bank”. The decision by Sabadell, Spain’s fifth largest bank, to carry out this operation was taken after finding out about the “growing interest” of international investors to acquire stable assets of the Catalan financial entity. It is expected that at least €1.33 billion will be attracted, which will subsequently make Banc Sabadell to one of the best capitalised banks in Europe with a core capital beyond 11%.
Barcelona (ACN).- The Board of Directors of Spain’s fifth largest bank, Banc Sabadell, approved a capital increase operation of €1.4 billion. This transaction will be in the form of two consecutive capital increases that will “strengthen capital and allow new important shareholders to join the bank aiming [to reinforce] the future internationalisation process of the bank”. Under the leadership of the bank’s President, Josep Oliu, the decision to carry out this operation was made after finding out about the “growing interest” of international investors to acquire stable assets of the Catalan financial entity. With both transactions secured by Deutsche Bank AG and JP Morgan, Sabadell expects to obtain a minimum of €1.33 billion and to become one of the best capitalised banks in Europe with a Core Tier 1 EBA ratio over 11%.
Shares to be sold in two blocks
The proposed capital increase by the Catalan-based bank will involve two transactions. The first will be worth up to €650 million, of which €425 have already been guaranteed to be sold, and will be sold at a price of €1.64 per share. This block is to be aimed at international investors of strategic importance and it is predicted that the acquisition by two new shareholders, Colombian Gilinski group and Fintech Advisory, will be conducted through an accelerated private placement.
The second block of sales will be directed towards existing shareholders and will consist of preferential subscription rights. This sale will take place after the accelerated placement of the first extension and the price per share will be €1.10. The preferential subscription rights will be sold between the 16th and 27th of September. These shares will begin trading on the stock market on the 8th of October and will have the same economic rights as those currently listed.