union of The two entities creates fourth Spanish bank ahead of Sabadell
The meetings of shareholders of Bankia and BMN, both controlled by State, agreed to ir merger, as planned. The operation is articulated by means of delivery from 205.6 million of newly issued shares of Bankia to shareholders of BMN, which give a value of 825 million euros (to 0.41 times its book value).The shareholders of BMN will hold 6.7% of share capital of Bankia, in event of exchange (expected in December), although 65% of m will remain in Fund for Orderly Bank Restructuring (FROB). The Board of Bankia, has approved appointment of president of BMN, Carlos Egea, as a new external director of entity.
Aegean, which had to face opposition to merger of Foundation Pinnae, which controls 4,34% of BMN, explained that absorption was only output possible and predicted problems to rest of medium sized banks. BMN lost 39 billion in 2016. "In last few years have happened, are happening and will happen many things in financial sector that have changed and will change dramatically model of same. We have gone from a sector formed by numerous credit institutions, majority of regional court and small size, one composed of a few entities (mostly banks) at national level and of greater size".
- The FROB lose or 1.693 million after impact of sale of BMN
- The sale of BMN to Bankia cost of time to State to 1,100 million
- BMN, which will be merged with Bankia, lost 39 billion in 2016
- Economy rescues bank BMN to decide which merged with Bankia
In his opinion, " complexity of environment and pressure of markets, made expected" this fusion "was not an alternative to preserve value, and above facts, contemporaries, and subsequent related entities comparable, validate even more, if possible, reasonableness of decision and of equation of exchange".
A representative of Pinnae, Platform in Defense of Minority Shareholders of BMN, board said that he was opposed to redemption value of shares to be much inferior to what y consider real. He noted that studied actions against "all agreements that you understand process and contr directors and of bodies that have participated in this process." Pinnae, formed by representatives of former Caixa Penedés sold to Sabadell, recalled that FROB said to have received an offer of 1,300 million by BMN, a figure higher than 825 million that pays Bankia.
Aegean, in turn response, he explained that that offer had to refund cost cost of rupture of agreements with insurers, so that it was at 1.060 million. He also added that it was "not binding," and hence could not be considered a real offer. The president of BMN, origin of which is Caja Murcia, recalled that Liberbank listed to 0.31 times its book value, Unicaja came out to 0.35 times and Bankia valued ir bank at 0.41 times. "We'll see what happens with increase of share capital of Liberbank", he dropped to auditorium. The CNMV has forbidden speculation through short positions in securities of entity asturian until November 30, after suffering heavy falls on Stock exchange.
Egea insisted that re was no or exit with se words: "y Have changed rules of game in financial sector. The European Central Bank and European Authority for Resolution have publicly stated ir conviction of need for fewer entities and higher capital requirements, as prescribed for a higher robustness of system and greater credibility of business plans".
Goirigolzarri: "Stage of growth"
merger of two entities will be fourth financial institution in sector, a giant with total assets above a 223,000 million euros, 2.515 offices and 8.2 million customers. With this figures exceeds Sabadell. Anyway, it's worth remembering that when it was created Bankia in 2011 won first place for volume of business in Spain.
The chairman of Bankia, José Ignacio Goirigolzarri, has pointed out to attendees at Meeting, held in Valencia, that approval of this union mark beginning of a "new growth stage", which will allow entity to raise its profit 245 million euros, and will contribute to return of a part of public aid received.
in Addition, contribution of 1.7 million customers of BMN, Bankia, will exceed eight million users and will be a leader in Granada, Balearic islands and Murcia, where his presence until now was limited.
The Spanish socialist workers party has warned today that it will be "vigilant" to merger between Bankia and BMN press "fundamental commitments" for development of whole of province of Granada, where he operated CajaGranada,which is part of BMN as Caja Murcia and Sa Nostra Balearic islands. The PSOE hoped that more strong financially to this territory.
The shares of Bankia fell 1,74% on Stock exchange, up to 3,96% eur, at close of meeting this Thursday.