Banco Sabadell President Addresses Shareholders on BBVA OPA Progress
The president of Banco Sabadell, Josep Oliu, informed shareholders through a letter about the current status of BBVA’s public takeover offer. The message arrives just one day before an extraordinary general meeting BBVA has convened to approve the capital increase needed to complete the purchase.
In the letter, Oliu writes: “We are overwhelmed by a vast stream of information about the OPA process, and I want to emphasize that Sabadell shareholders are still far from needing to decide if a decision is necessary.” With these words, the Sabadell leader aims to reassure investors that immediate action regarding the OPA is not required.
The board of BBVA has scheduled an extraordinary general meeting for July 5. Oliu notes that the meeting does not entail any decision on accepting the OPA or any assumption about how shareholders might vote when considering both entities. He stresses that the final call on the OPA remains distant and that shareholders will have ample time to evaluate the offer once the acceptance period opens.
Oliu further explains that the moment the acceptance window begins will be the moment shareholders can decide. The exact timing is not known, but due to the complexity of ongoing procedures it is estimated that it could occur late in 2024 or even in 2025. This broad timeframe gives shareholders a window to prepare and weigh all implications of the proposal.
The Sabadell board, according to Oliu, will issue a report with its recommendation once the acceptance process opens. This commitment reinforces the board’s pledge to provide clear guidance grounded in a thorough analysis of the offer.
To help shareholders make informed choices, Oliu stresses that BBVA must publish clearly and transparently all elements that could affect the value offered. Key items include the detailed financial impacts of the OPA, anticipated synergies, restructuring costs and their effect on capital, potential business losses especially in the SME segment, and capital impacts from possible changes in commercial agreements or adjustments to bond and credit portfolios.
Additionally, Oliu highlights the importance of considering competition conditions that might be imposed by the competition authority and any other government restrictions. These factors could significantly influence the viability and final value of the offer.
In closing his letter, the Sabadell president reaffirms a commitment to transparency and proper information for shareholders: “I want to stress my commitment and that of the bank to ensure that Sabadell shareholders receive the most appropriate and complete information so they can freely make their decisions, and to reiterate that there is currently no obligation or decision to be made regarding the OPA.”
[Citation: Bank press communications and public statements from Sabadell and BBVA regarding the OPA process]