CaixaBank Shares Fall on Capital Raise to Fund BPI Takeover
September 23 2016 - 4:33AM
Dow Jones News
By Jeannette Neumann
MADRID--Shares in CaixaBank SA (CABK.MC) were down 2.8% on
Friday after the Spanish bank announced a capital raise to fund its
takeover of Portugal's Banco BPI SA (BPI.LB).
CaixaBank sold 585 million shares, which represents 9.9% of its
capital, to raise EUR1.322 billion ($1.48 billion), the bank said
in a regulatory filing late Thursday night.
The sale price was EUR2.26 a share, a 3.67% discount to the
closing price on Thursday.
The capital raise comes after shareholders of Portugal's BPI
approved the removal of a voting rights cap on Wednesday, a
condition for CaixaBank's takeover of the lender.
CaixaBank already owned about 45% of BPI but because of a 20%
voting rights cap, the Spanish bank's control was hamstrung. After
the removal, CaixaBank on Wednesday increased its offer for BPI to
EUR1.134 a share, valuing the Portuguese lender at EUR1.65
billion.
Write to Jeannette Neumann at jeannette.neumann@wsj.com
(END) Dow Jones Newswires
September 23, 2016 04:18 ET (08:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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