Spain’s CaixaBank has completed the takeover of Portugal’s second-largest listed lender, Banco BPI, paying €645m to raise its stake to 84.5% from 45%, which gives it control over the Portuguese bank.
The two banks together have a business volume of €564bn (credit and customer funds), and will have a combined market share in the Iberian Peninsula of over 20% in long-term savings products (insurance and pensions), 18% in investment funds, 14% in credit and 13% in deposits.
The operation required an outlay of €644.52m. CaixaBank will now be able to implement a revenue and cost synergies plan worth around €120m, seeking to drive efficiency improvements at BPI, the Spanish bank said.
“We thank the shareholders who accepted our offer, and welcome those who join us in what promises to be an exciting new era for BPI, which is a solid and well-managed bank. We will now be able to combine the best of both cultures in what will be a mutually enriching experience”, said CaixaBank’s chairman Jordi Gual.
The CaixaBank CEO, Gonzalo Gortázar, added that “this operation confirms CaixaBank’s commitment to the Portuguese market, the recovery of which is grounded on solid foundations, such as growing competitiveness and improving confidence among international investors.”
The proforma impact of the operation on the fully-loaded CET capital, according to internal preliminary estimates prior to costs being allocated to books, will be 116 basis points, putting CaixaBank’s ratio above 11% (11.2%), after CaixaBank made a treasury stock placement in 2016 in order to absorb the impact on capital had by the operation.
Proposed substitution of directors
At the first BPI Board of Directors meeting following completion of the takeover bid, notice was provided by Artur Santos Silva, Chairman of the Board; Fernando Ulrich, Chairman of the Executive Committee (CEO); and Maria Celeste Hagatong and Manuel Ferreira da Silva, members of the Board, stating their intention not to continue in their current positions when BPI’s corporate bodies are next renewed, scheduled for the BPI AGM on 26 April.
CaixaBank, as majority shareholder of Banco BPI, notified the board of its intention to appoint Artur Santos Silva as honorary chairman of Banco BPI and chairman of a new board committee on corporate social responsibility.
The Spanish bank will propose a new board of directors, comprised of: Fernando Ulrich, chairman; Pablo Forero, vice-chairman; António Lobo Xavier, vice-chairman; Alexandre Lucena e Vale, António Farinha de Morais, Carla Bambulo, Francisco Manuel Barbeira, Gonzalo Gortázar, Ignacio Álvarez-Rendueles, João Oliveira Costa, José Pena do Amaral, Javier Pano, Juan Antonio Alcaraz, Juan Ramón Fuertes, Lluís Vendrell, Pedro Barreto, Tomás Jervell and Vicente Tardio.