Spain's Sabadell completes sale of UK's TSB to Santander
Details of the TSB Sale and Its Impact
Transaction Overview
MADRID, May 1 (Reuters) - Spain's Sabadell said on Friday it had completed the sale of British bank TSB to Santander for a total of around 3.3 billion euros ($3.87 billion).
Breakdown of Sale Amount
The amount includes the 2.65 billion pound purchase price, about 3.05 billion euros, plus 213 million pounds, some 240 million euros, in value generated by TSB in the months leading up to the close of the deal, which was announced in July.
Financial Implications for Sabadell
Capital Gains and Shareholder Benefits
Sabadell, Spain's fourth-largest listed bank by market value, said completion of the deal would allow it to book a capital gain of around 300 million euros and generate more than 400 basis points of capital.
Special Dividend Announcement
Following regulatory approvals, Sabadell will also be able to distribute a special dividend of 0.50 euro per share to shareholders on May 29, the bank said in a statement.
Strategic Impact for Santander
Santander, the euro zone's biggest bank by stock market value, said in July that the transaction would help it become the third-largest bank in Britain when ranked by personal current account balances.
Exchange Rate Reference
($1 = 0.8524 euros)
Reporting Credits
(Reporting by Graham Keeley and Jesús Aguado; Editing by David Goodman and Alexander Smith)
