CaixaBank wants to have closed tender offer until September and restructure BPI – Daily News – Lisbon

CaixaBank wants to improve domestic operations of BPI and lower cost burden on revenues of 74% to 50% in three years

the CaixaBank advanced yesterday with new tender offer (OPA) for BPI’s capital, as the DN / Mad Money reported, offering 1,113 euros per share. The value is 16% below the IPO that the same group released on the bank in 2015 and was considered low by analysts. Although lower, the truth is that thanks to legislative changes introduced by the government bargaining power of CaixaBank is now much higher.

The entry into force on July 1 of the change that will end the limits to voting rights is the main reason for this increase of Spanish position: the CaixaBank conditions the offer at the end of the 20% limit with a shareholder may vote as in 2015. But now this goal, and in the light of such changes, it is achievable. If the General Assembly (AG), call the BIS to vote deshielded, is scheduled for after July 1, and given that the meeting will only serve to decide on voting limits, votes that AG will no longer be limited, despite the transitional rule, and CaixaBank should be able to unlock BPI’s statutes, getting missing him only shareholders with 5.9% of the shares accept the price to ensure success. That is, from the moment you get the end of the screening, the Spanish no longer need that Santoro agreed to sell the OPA. “We look forward to BPI listed in Portugal, then shareholders may maintain its position in the capital if it considers not to sell,” he said yesterday Gonzalo Gortázar, CEO of CaixaBank, after asked about the lowest price of the Tender Offer. “It’s a fair assessment,” he added. The Catalan group estimates that the OPA end during the third quarter of the year.

In addition to deshielded and obtain a minimum of 50% plus one share, the OPA has other steps to perform, as no opposition European Central Bank, Insurance and Brussels Supervisory Authority. Another condition involves the CMVM, who are asked to notwithstanding subsequent offering release duty. The regulator of the Lisbon Stock Exchange since yesterday gave approval to the first step of the operation, the preliminary announcement of the takeover bid

Plan for BPI:. Restructure

Pausing already 44.1% of the BPI, the takeover of the Catalan group will require an investment of 85 million to 906 million to the Spanish, that in the case of remaining 50% plus one share or 100% of BPI. But if the offer is successful, what is the plan for the BPI?

The group CEO and CFO raised a little plan veil yesterday in a conference call. Despite the price downward revision, the CaixaBank considers that BPI has improved a lot in the last year. BPI achieved “tremendous progress in the last 12 months,” said Gortázar, being very complimentary of Ulrich team. Still, the group identifies problems and ways to BPI improve.

Starting with the synergies that have been estimated at 85 million euros within three years, a value which is added “EUR 35 million in annual revenues “with greater integration between the entities. But there are also aspects to improve: “BPI has a very high cost-income ratio”, said the CEO of the group, detailing that this ratio in BPI’s Portuguese operation reaches 74%, “compared with 58% of average rivals and 53% of CaixaBank. ” And the goal is to cut this ratio to “less than 50%” in three years. But there’s more, added the CFO, Javier cloth: “Revenue per employee is 120 thousand euros, compared with 180,000 in rival and 240,000 of CaixaBank” he said. Spanish anticipate EUR 250 million in “restructuring costs before tax” for BPI.

ECB and New Bank

The CaixaBank said yesterday that It has kept the ECB informed of all the advances in BPI, with Spanish directors to express themselves “hopeful” that this supervisor accepted the request to delay any proceedings against the BPI on account of excess exposure to Angola, an issue that was It has been resolved by April 10. Already on sale New Bank, the CEO of CaixaBank pointed out that “today we advance on BPI and is all. There is no other plan in addition to providing capital and know-how to BPI.” He assured, however, that with the support of CaixaBank “BPI will reach your goals without any further consolidation.”