BBVA Receives $2.2 Billion Offer for Chilean Unit From Bank of Nova Scotia

By Anthony Shevlin Features Dow Jones Newswires

Banco Bilbao Vizcaya Argentaria SA (BBVA.MC) said Tuesday that it has received a binding offer of $2.2 billion from Bank of Nova Scotia (BNS.T) for its Chilean unit Banco Bilbao Vizcaya Argentaria Chile SA (BBVACL.SN).

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The Spanish bank said the acquisition offer was for its 68.19% stake in BBVA Chile, as well as other companies in its group in Chile whose operations are complementary to the banking business.

The company said the offer doesn't include BBVA's stake in the automobile financing companies of Forum group or in other Chilean entities from BBVA's group which are engaged in corporate activities of the BBVA group.

BBVA said that the transaction would generate a net capital gain of 640 million euros ($763 million) and have a positive impact on the group's common equity tier 1 (fully loaded), a key measure of capital strength of banks, of about 50 basis points.

"The transaction is positive for the Chilean market and the offer is financially very attractive for BBVA," said BBVA Chief Executive Carlos Torres Vila.

BBVA has a shareholders agreement with the Said family--owners of a 31.62% stake in BBVA Chile--who can exercise their right of first refusal or exercise its tag-along rights, which allows it to sell its shares with the same conditions as BBVA.

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The closing of the transaction is subject to the relevant regulatory approvals.

Write to Anthony Shevlin at anthony.shevlin@dowjones.com

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Banco Bilbao Vizcaya Argentaria SA (BBVA.MC) said Tuesday that it has received a binding offer of $2.2 billion from Bank of Nova Scotia (BNS.T) for its Chilean unit Banco Bilbao Vizcaya Argentaria Chile SA (BBVACL.SN).

The Spanish bank said the acquisition offer was for its 68.19% stake in BBVA Chile, as well as other companies in its group in Chile whose operations are complementary to the banking business.

The company said the offer doesn't include BBVA's stake in the automobile financing companies of Forum group or in other Chilean entities from BBVA's group which are engaged in corporate activities of the BBVA group.

BBVA said that the transaction would generate a net capital gain of 640 million euros ($763 million) and have a positive impact on the group's common equity tier 1 (fully loaded), a key measure of capital strength of banks, of about 50 basis points.

"The transaction is positive for the Chilean market and the offer is financially very attractive for BBVA," said BBVA Chief Executive Carlos Torres Vila.

BBVA has a shareholders agreement with the Said family--owners of a 31.62% stake in BBVA Chile--who can exercise their right of first refusal or exercise its tag-along rights, which allows it to sell its shares with the same conditions as BBVA.

The closing of the transaction is subject to the relevant regulatory approvals.

Write to Anthony Shevlin at anthony.shevlin@dowjones.com

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(END) Dow Jones Newswires

November 28, 2017 07:32 ET (12:32 GMT)