José Ignacio Goirigolzarri, president of Bankia: "we Aspire to be best bank in Spain
The entity, fourth bank of Spain, expected additional benefits of 245 million and will be a leader in customer deposits in six regions
The general meeting of shareholders of Bankia has approved this morning proposed merger with Banca Mare Nostrum in course of an extraordinary meeting held in Valencia. The operation, announced last June 27, has been submitted to a vote parallel by shareholders of BMN.
With approval of both boards, Bankia and BMN will complete ir merger in month of December even though, according to president of Bankia, Jose Ignacio Goirigolzarri, total integration of systems, that is to say, highlight of integration visible for customers, will be completed in first quarter of 2018. Bankia, according to its chairman, is on her way to successfully completing its restructuring plan. And, with this, "we aspire to be best bank in Spain".
The operation will allow Bankia to be leading institution in customer deposits in six Spanish regions (Madrid, Valencia, Murcia, Balearic islands, La Rioja and Canary islands), which offer 36% of national GDP. "It is a great operation of creation of value, and that creates new opportunities for our respective teams," according to has explained to its board chairman of Bankia, José Ignacio Goirigolzarri, who ensured that integration process "shall be guided by strict criteria of meritocracy".
in Addition, it has ensured that this operation will allow entity to raise basic income of banking business, to time that will increase 25% ir customer base, up to more than eight million, and make it possible "to achieve leadership positions in high-growth markets" in which currently have a presence "very brief". To Goirigolzarri, merger "opens up clear opportunities" because it "provides a significant increase in customer base and presence in market" and this, "should result in a greater flow of income both in chapter on interest margin as well as in committees".
The operation is carried out by delivery from 205.6 million of newly issued shares of Bankia to shareholders of BMN, whose value has been estimated at 825 million euros (to 0.41 times its book value). Bankia is rated at 11.549 million euros in equation of merger by absorption. It is estimated that additional benefits of merger to shareholders will be of € 245 million and a 16% increase in value of action.
In board of Bankia has also approved appointment of president of BMN, Carlos Egea, as a new external director of Bankia. The designation will be effective upon merger. BMN gives Bankia a few 38.000 million euros in assets and a leading franchise in Region of Murcia, Granada and Balearic Islands, as has been exposed on board.
During turn of words, one of participants raised ir doubts about adequacy of Egea to take on position. Goirigolzarri argued that profile of current president of BMN "has been understood as a good" on part of council, given that it is a professional "with a long and successful career." Yes, he clarified that any appointment of executives in banking industry is forced to overcome two tests of fitness. The first, on part of board of directors. The second, on part of European Central Bank, according to Goirigolzarri, is who will have last word in appointment. However, president of Bankia was open to receive any kind of information about it and to take account of any relevant fact that should be taken into account "because you will always be in benefit of shareholders."
In resultant entity, shareholders of BMN will hold 6.7% of share capital of Bankia in form of liquid shares, which are publicly traded and pay a dividend that has been growing from July 2015 -with a charge to benefit of 2014-when entity distributed its first dividend.
After merger, Fund for Orderly Bank Restructuring (FROB) remains almost same participation that I had in Bankia and BMN, result of rescue operation of banking system. The Frob had 67,14% of Bankia and merger will be in 67%.
once approved transaction by shareholders ' meeting are asked to provide authorization to various regulators, supervisors and authorities that must approve process, although a priori account with approval of all of m.
According to its chairman, Bankia is european bank that more capital organic has produced in last years. "We've gone from being bank with lowest solvency among Spanish banks to entity with highest level of ratio for capital". The operation was approved at a time when Spanish economy "is growing, with verve and above european average, with a rate of unemployment that are in clear decline", as has been exposed Goirigolzarri, which also points to a possible spike in interest rates.
At session of shareholders ' meeting of Bankia has been represented 82% of capital. The reunion has been developed with absolute normality, without presence of banners of protest by workers and customers that had become commonplace in last few meetings. Known favorable vote, achieved by a large majority, Goirigolzarri has taken back word to inspire courage in ir equipment: "Any integration process is easy," he said, "but we are in a position to have high aspirations, and ours is to be best bank in this country."
this is Not, in ir view, launch messages "narcissistic". Bankia has before if a "formidable competitor", in a banking market, Spanish, "enormously competitive". But Bankia, has proclaimed, have also conditions to be ambitious. "In beginning our mind was pure survival instinct," he said, "but today, mood must be illusion and ambition". And he concluded: "due to a lack of commitment, effort and enthusiasm will not be".BMN also to vote on operation
From Banco Mare Nostrum (BMN), its current president, Carlos Egea, has stated that merger of entity with Bankia is " alternative more clearly and with more value for shareholders,", and will allow bank that presides over part of fourth largest banking group in country.
"After you decide merger as a better alternative, have respected rights and interests of our shareholders", has defended president of BMN, which has explained that entity agreed, " best protection of interests of minority shareholders", creation of a monitoring commission 'ad hoc' composed by independent directors.
Egea has pointed out during his speech at extraordinary meeting of shareholders of BMN, convened with sole purpose of approving transaction, that merger represents a "transaction value, with a clear sense industrial" that has received "good response" on part of market, reports Europa Press.
The merger of both entities offers a "concrete advantages", both of which feature business profiles similar and complementary geographical with an overlay of offices "very limited", in addition of synergies by optimization of central services and office networks, as pointed out by Egea
in Addition, he said, Bankia is an entity with a 'rating' "of better quality" than BMN, what represents a "clear cost savings" in emissions wholesalers. Both entities have complied with ir commitments restructuring", has valued Egea, who customers of BMN what will be after integration of an entity "empowered".
The fusion also involves, in his view, an "improvement of competitive position" of BMN in banking market, since merger, "consolidated to merged entity as one of leading national banking, fourth largest by assets and with a structure ready for future market requirements".