Banc Sabadell has completed today the sale of its British subsidiary TSB to Santander for 3.3 billion euros once all the relevant authorizations were obtained. That amount includes 300 million in capital gains (extraordinary profit) from the operation.
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The sale agreed in July was key to the subsequent failure of BBVA’s hostile takeover bid for Sabadell. As the Catalan bank committed, it will now pay an extraordinary dividend on account of the sale of 50 cents per share on May 29. One of the lines of defense against the takeover bid was the promise to increase the dividend to its shareholders. Today, Sabadell, chaired by Josep Oliu, has reiterated its commitment to deliver 6.45 billion to its shareholders between 2025 and 2027.
For Santander, the operation allows it to strengthen itself in the UK market against its rivals. The amount paid by Santander includes 2.65 billion pounds (about 3.05 billion euros) of the purchase price, plus 213 million pounds (about 240 million euros) of value generated by TSB in the months elapsed until the closing of the operation.
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In a statement, Banc Sabadell CEO César González-Bueno highlighted that it is “a great operation that is attractive for all parties” which allows “focusing the bank’s strategy in Spain, our natural market.” In the same note, the former CEO of TSB, Marc Armengol, and upcoming CEO of Sabadell stated that “we have closed a very relevant operation for the British financial sector.”
Sabadel will pay a dividend of 50 cents per share for the sale
Banco Sabadell acquired the British entity specialized in the mortgage business in 2015 for an amount of 1.7 billion pounds and, since then, has received more than 600 million euros from its subsidiary via dividends.
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