Banc Sabadell SA (Banc Sabadell SA) announced the suspension of the share repurchase program after the Spanish Bank of Bilbao (BBVA.US) directly submitted a takeover offer to the shareholders of Sabadell Bank.
The Zhitong Finance App learned that Banc Sabadell SA (Banc Sabadell SA) announced the suspension of the share repurchase plan. Previously, the Spanish Bank of Bilbao (BBVA.US) directly submitted a takeover offer to the shareholders of Sabadell Bank.
Bank Sabadell said in a statement that the Spanish market regulator CNMV proposed a request to suspend share repurchases on Monday, and indicated that the bank had suspended repurchases since May 9. The Bank of Bilbao made a takeover offer on the same day, valuing the smaller competitor at 12.4 billion US dollars. Spain's takeover rules may restrict activities such as buybacks of acquired companies.
Sabadell Bank's €340 million buyback program began on April 25 and will continue until the end of this year. As of May 8, the Spanish bank said it had purchased shares worth 93 million euros, or about 27% of the total buyback.
Bank of Bilbao will exchange 1 newly issued share for 4.83 Banco Sabadell shares. The proposal was rejected by Sabadell Bank management on the grounds that the bid was too low. The Bank of Bilbao has previously said that the process is expected to take 6 to 8 months.