Banco Bilbao Vizcaya Argentaria SA Sale of BBVA's U.S. subsidiary to PNC (3968F)
16 November 2020 - 6:00PM
UK Regulatory
TIDMBVA
RNS Number : 3968F
Banco Bilbao Vizcaya Argentaria SA
16 November 2020
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), in accordance with
the provisions of Securities Market legislation, hereby
communicates the following:
INSIDE INFORMATION
BBVA has reached an agreement with The PNC Financial Services
Group, Inc. for the sale of 100% of the capital stock of its
subsidiary BBVA USA Bancshares, Inc., which in turn owns all the
capital stock of the bank, BBVA USA, as well as other companies of
the BBVA group in the United States with activities related to this
banking business (the "Transaction").
The agreement reached does not include the sale of the
institutional business of the BBVA group developed through its
broker dealer BBVA Securities Inc. nor the participation in Propel
Venture Partners US Fund I, L.P. (together, the "Excluded
Business"). The Excluded Business will be transferred by BBVA USA
Bancshares, Inc. to entities of the BBVA group prior to the closing
of the Transaction. In addition, BBVA will continue to develop the
wholesale business that it currently carries out through its branch
in New York.
The price of the Transaction amounts to approximately 11,600
million US dollars (approximately equivalent to 9,700 million
euros) ([1]) . The price will be fully paid in cash.
It is expected that the Transaction would result in a positive
impact on BBVA Group's Common Equity Tier 1 (fully loaded) ratio of
approximately 300 basis points and positive results (net of taxes)
of approximately 580 million euros ([2]) .
The closing of the Transaction is subject to obtaining
regulatory authorizations from the competent authorities. It is
estimated that the closing of the Transaction would take place in
mid 2021.
An analyst presentation is convened today at 9:30 a.m. (Madrid
Time). The presentation can be followed via BBVA's website on the
Internet ( www.bbva.com ). A recording of the presentation will
also be available on the above website, for a period of at least
one month.
Madrid, November 16, 2020
([1]) EUR/USD exchange rate of 1.20
([2]) The determination of the impact on Common Equity Tier 1
and the financial results was made taking into consideration the
group's financial statements as of September 30, 2020 and a EUR/USD
exchange rate of 1.20. The amount of the impact on Common Equity
Tier 1 and the financial results will vary from the date of this
disclosure up to the date of closing of the Transaction due to,
among other circumstances, changes in the book value of the
companies included in the Transaction and changes in the EUR/USD
exchange rate.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DISGPGRPGUPUUQQ
(END) Dow Jones Newswires
November 16, 2020 02:00 ET (07:00 GMT)
Banco Bilbao Vizcaya Arg... (LSE:BVA)
Historical Stock Chart
From Apr 2024 to May 2024
Banco Bilbao Vizcaya Arg... (LSE:BVA)
Historical Stock Chart
From May 2023 to May 2024