BBVA launched a merger proposal which Banco Sabadell’s Board of Directors rejected

Prior to the announcement of the takeover bid, the Board of Directors of Banco Sabadell had rejected an unsolicited, tentative and conditional merger proposal received from BBVA on 6 May 2024 (based on the same economic conditions as the takeover bid before the adjustments to the exchange ratio due to the respective dividends paid by BBVA and Banco Sabadell) after carefully studying it.

The Board of Directors of Banco Sabadell rejected the proposal, as it significantly undervalued Banco Sabadell’s project and its growth prospects as an independent entity. The Board of Directors expressed its full confidence in Banco Sabadell’s growth strategy and financial goals, believing that Banco Sabadell’s strategy as an independent institution would generate greater value for its shareholders. It also indicated that the significant fall and volatility of BBVA’s share price in the days prior to the rejection of the proposal led to additional uncertainty about the value of the proposal.

Based on a detailed analysis of the proposal, the Board of Directors concluded that the offer was not in the interest of Banco Sabadell and its shareholders, and consequently rejected BBVA’s proposal.

The Board added that it believed its decision was in line with the interests of Banco Sabadell’s clients and employees.