The future of Sabadell is now in the hands of more than 200,000 shareholders. According to the latest data for the first quarter, 52% of the shares are in the hands of institutional investors (investment or pension funds, banks or other institutions). The remaining 48% is owned by minorities and almost three quarters of these are in turn Sabadell clients, financial sources explain. And on average they have held their shares for almost 10 years. In 2014, Sabadell titles reached 2.4 euros. Therefore, in some cases BBVA’s offer of 2.12 euros would be lower than the purchase price. At the highs of 2007 it exceeded 8 euros. Of the aforementioned 48% of minority shareholders, more than a third reside in Catalonia.
In the absence of a hard core shareholding (like the one that was in the hands of La Caixa or a group of Catalan businessmen years ago), the atomization of the bank’s capital leaves it unknown what the result of the offer may be. Financial sources explain that institutional investors may simply move by price and accept the takeover bid (public offering of shares) if it is attractive enough. For this, it is necessary that the evolution of the two values ??on the stock market is even.
In the case of minorities, it is less clear what their motivation may be to sell or maintain. The reaction against the board and a good part of society and the Government could weigh on the minds of these minority shareholders.
Sabadell plans to meet its board of directors to report on the offer but does not have to express an opinion on it. Financial sources said that it is actually of little relevance, since as the takeover bid is identical to the offer made last week, the board has already clearly said that it is against it. When you must express an opinion it is in the first 10 days after the formal presentation of the takeover bid. Predictably it will be contrary.
Since last week, the two banks plus their advisors have been working to explain to investors and shareholders the benefits of each of their projects. BBVA, through its president, declared yesterday that there are already several institutional investors who have approached the bank interested in the purchase offer. In the case of Sabadell, the bank is also meeting with analysts and institutional shareholders this week to detail its solo roadmap, which highlights the payment of dividends thanks to the generation of profits and capital of 2,400 million in two years to be paid until 2026. Yesterday in the telematic press conference he offered, Torres assured that they could not yet give a guide to the market on what the shareholder remuneration was going to be in the period but added that it may be equal to or higher than the from Sabadell.
Among the institutional ones, according to Bloomberg, the first shareholder is Blackrock, with 3.6% of the shares. The second is the Mexican investor David Martínez, who has 3.5% of the shares and is also a member of the board of directors. Financial sources assume that Martínez is opposed to the operation, like the rest of the governing body. Some of Sabadell’s main shareholders are also BBVA’s. And in many of the institutional ones, the participation is on behalf of their clients.
Jaume Puig, general director of GVC Gaesco Gestión, said yesterday that the takeover bid is a way to pressure the Sabadell board to negotiate.
