first_imgTuesday 2 November 2010 10:05 pm SPANISH bank BBVA yesterday launched a €5bn (£4.4bn) rights issue to help it fund its diversification away from a stagnant home market and bolster its capital levels in line with new Basel III requirements.BBVA, the second-largest Spanish lender after Santander, said that it would buy nearly a quarter – 24.9 per cent – of Turkish bank Garanti for €4.2bn, and raise €5bn with a rights issue to part-finance the deal. The deal, which gives BBVA joint control with Garanti parent Dogus Group, will officially make the Spanish lender an emerging markets bank with 51 per cent of its earnings now coming from that source. Until now, the bulk of BBVA’s overseas business was in Latin America and the United States. The BBVA rights issue will be a one-for-five offer which will entitle the holders to buy shares at €6.75 each, 29 per cent below Friday’s closing price of €9.11. BBVA paid eight Turkish lira per share for the stake, a 10 per cent discount to last week’s average price, but shares in Garanti, viewed as one of Turkey’s best-run banks, have risen by over a third since the start of the year.As part of the deal, BBVA acquires an option to increase its stake by a further one per cent and get a majority of board seats in five years time. Shares in BBVA fell as much as 3.8 per cent to hit a four-month low of €8.76 before retracing lost ground to close one per cent lower after investors baulked at the price paid and the dilutive effect of the rights issue. Goldman Sachs estimated the rights issue would dilute earnings per share by four to five per cent for 2011-2012. BBVA’s move comes three to four years after other major international banks such as Citigroup, ING and BNP Paribas bought or took stakes in Turkish lenders.BBVA said €3.1bn of the €5.1bn rights issue would be used for the acquisition, with €1bn earmarked for the potential impact of the purchase. The rest would be used for non-acquisitive growth. Morgan Stanley and Goldman Sachs will act as joint global coordinators and bookrunners for the rights issue. BBVA in €5bn cash-call as it buys Garanti by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmDirect HealthyKate Silverton’s PartnerDirect HealthyElite HeraldKate Middleton Just Dropped An Unexpected Baby BombshellElite HeraldReporter CenterBrenda Lee: What Is She Doing Now At 76 Years of Age?Reporter CenterMartha Stewart CBDShop Martha Stewart’s CBD Products NowMartha Stewart CBD whatsapp Share KCS-content center_img More From Our Partners Police Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comWhy people are finding dryer sheets in their mailboxesnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 whatsapp Show Comments ▼ Tags: NULLlast_img

BBVA in €5bn cash-call as it buys Garanti

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