Banco Bilbao Vizcaya Argentaria (BBVA) of Spain has announced a voluntary takeover bid for a 50.15 percent shares in Garanti BBVA, with a price of TRY 12.20 per share. The offer is valid for the shares currently not owned by BBVA.
On November 15, the price offered represented a premium of 34 percent over the average share price of the past six months, 24 percent over last month, and 15 percent over the last closing as of November 12, 2021. The maximum aggregate amount of consideration payable by BBVA is around EUR 2.25 billion.
“This transaction represents a great opportunity to invest more in our subsidiary in Turkey and create value for our shareholders," said BBVA Chairman Carlos Torres Vila.
According to BBVA's latest report, Turkey is a strategic market for the bank with its economic growth potential, population pyramid, and commercial ties with Europe. The report unveiled Turkey's 4.5 percent CAGR GDP growth during the 2015-2021 period is higher than 1.8 percent of EU-15, while having a median age of 32 as of 2020, relatively younger when compared to EU-15's 43. The report noted household debt to GDP ratio in Turkey was 17 percent as of Q2/2021, which was 31 percent in EM and 69 percent in EU-15, while adding 56 percent of Turkey's exports had Europe as destination in 2020.
BBVA first invested in Garanti in 2011, and increased its shares to its current level of 49.85 percent in 2017.