Spanish bank BBVA has increased the offer price to buy the remaining stake in Turkish lender Garanti BBVA.
As per the initial takeover bid announced in November 2021, BBVA had agreed to pay TRY12.20 for each share for the 50.15% of Garanti BBVA.
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BBVA’s offer price has now been increased to TRY15 per share, which values the deal at approximately €1.98bn.
Notably, the Turkish currency has lost around 28% of its value since the offer was first announced.
This is why, despite the increase in the offer price, the latest bid is lower than what BBVA announced in November 2021.
The deal is part of BBVA’s efforts to expand operations in emerging markets to capitalise on greater growth opportunities.
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By GlobalDataBBVA first acquired a 25.01 stake in Garanti BBVA in 2011. The Spanish bank increased its shareholding to 39.9% and then to 49.85% in 2015 and 2017 respectively.
The lender said Garanti BBVA minority shareholders have until 18 May 2022 to accept the voluntary takeover bid.
The financial impact of the deal will depend on how many Garanti BBVA shareholders accept the offer and sell their shares, the bank said.
If all the shareholders accept the offer, the deal will scrape off 34 basis points from BBVA’s CET 1 capital ratio.
Earlier this year, BBVA announced a $300m investment in Brazilian digital bank Neon to further its retail operations in the country.
