The Canadian Scotiabank is negotiating with BBVA the acquisition of 68.19% stake in BBVA Chile for €1.85bn.
Although BBVA has a majority stake in its Chilean subsidiary since 1998, it has maintained a corporate agreement with the Chilean holding Grupo Said – owning 31.62% of BBVA Chile – that provides it a preferential acquisition right. The remaining 0.19% is in free float in the market.
Therefore, BBVA needs to offer in the first place the right of purchase to its Chilean partner Grupo Said – since it has the right of first refusal – in order to be entitled to accept Scotiabank’s offer.
According to BBVA’s statement released to the Spanish National Securities Market Commission (CNMV), the operation – if carried out – would generate a net income of some €640m for BBVA.
“BBVA wishes to accept the offer and ,in compliance with the shareholders’ agreement, will communicate it to the minority shareholders so that they may exercise (if they wish) the preferential acquisition right to purchase the shares in BBVA Chile or the right accompanying that entitles them to sell their shares in BBVA Chile to Scotiabank under the same conditions as BBVA, “said the entity.
Scotiabank must carry out a takeover bid if it wants to fully acquire BBVA Chile.