Banco Bilbao Vizcaya Argentaria SA Sale of real estate business (8244X)
November 29 2017 - 2:13AM
UK Regulatory
TIDMBVA
RNS Number : 8244X
Banco Bilbao Vizcaya Argentaria SA
29 November 2017
Banco Bilbao Vizcaya Argentaria, S.A. ("BBVA"), in compliance
with the Securities Market legislation, hereby communicates the
following:
RELEVANT INFORMATION
BBVA has reached an agreement with a subsidiary of Cerberus
Capital Management, L.P. ("Cerberus") for the creation of a "joint
venture" to which the real estate business of BBVA in Spain will be
transferred (the "Business"). BBVA will contribute the Business to
a single company (the "Company") and will sell 80% of the shares of
such Company to Cerberus at the closing date of the
transaction.
The Business comprises: (i) foreclosed real estate assets
(hereinafter, the "REOs"), with a gross book value of approximately
EUR 13,000 million, taking as starting point the situation of the
REOs on June 26, 2017 (1) ; and (ii) the necessary assets and
employees to manage the Business in an autonomous manner. For the
purpose of the agreement with Cerberus, the whole Business has been
valued at approximately EUR 5.000 million.
Considering the valuation of the whole Business previously
mentioned and assuming that all the Business' REOs on June 26, 2017
will be contributed to the Company, the sale price for 80% of the
shares would amount to approximately EUR 4.000 million. The price
finally paid will be determined by the volume of REOs effectively
contributed that may vary depending on, among other matters, the
sales carried out from the date of reference 26 June 2017 until the
date of closing of the transaction and the fulfilment of the usual
conditions in this kind of transactions.
At the closing date, the parties will sign a shareholders
agreement in the Company that will include the usual protection
rights for minority shareholders in this kind of joint ventures in
favor of BBVA.
Finally, BBVA has signed an agreement with the Cerberus group's
entity, Haya Real Estate S.L.U., in order for it to provide, on an
exclusive basis, "servicing" services for the real estate portfolio
held by BBVA once the transaction has been executed.
The transaction as a whole is subject to obtaining the relevant
authorizations from the competent authorities. At the closing date,
which is expected to take place by the second half of 2018, and,
once the volume of REOs effectively contributed is known, it will
be possible to determine the definitive impact on the Group's
attributable profit, -which at this moment is estimated as not
significant- as well as the impact on the Common Equity Tier 1
(fully loaded), which is expected to be slightly positive.
Madrid, November 29, 2017
([1]) This amount mainly comprises foreclosed assets, as well as
other real estate assets from the Non Core RE unit, with a gross
book value as of June 30 of EUR 14,318 million, according to BBVA's
quarterly report, reduced by assets transferred in July to
Metrovacesa Suelo y Promoción with a gross book value of
approximately EUR 1,200 million and other minor adjustments.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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