In line with its strategy of overseas expansion, Spanish Banco Bilbao Vizcaya Argentaria (BBVA) announced that it has priced a EUR 2-billion (USD 2.5 billion) rights issue to fund the raise in its stake in Turkey’s Garanti Bank at EUR 8.25 per share.
Spain’s second-largest lender, BBVA announced on November 19 that it was raising its stake in Garanti, one of Turkey’s biggest banks, in a deal that will give it control of the board.
Turkish conglomerate Dogus Holding has agreed to sell a 14.89 percent stake to BBVA, which already owns 25 percent of Garanti, for TRY 5.5 billion (USD 2.5 billion), said Garanti. The deal cuts Dogus Holding’s stake to 10 percent.
Garanti has been a bright spot for the Spanish bank this year. BBVA’s net profit for the first nine months fell 37 percent to EUR 1.93 billion, but Garanti’s contribution of EUR 235 million represented a rise of 20 percent.