Banco de Sabadell €1.607 billion rights issue

Overview:

• Banco de Sabadell, Spain's fifth largest bank, has made a €1.6 billion rights issue in Spain and private placements to institutional investors outside Spain.
• The offering of over one billion ordinary shares and the rights issue is aimed to fund its tender offer for TSB Banking Group.
• The deal required the need to produce pro-forma financial information showing the impact of the acquisition of TSB Bank in Banco de Sabadell’s consolidated financial statements as well as regarding the use of proceeds; and the transaction featured a procedure for scaling back shareholder subscriptions of additional shares pro-rata to its current holdings in the bank as opposed to the volume of demand for additional share.

Adam Majeed - Regional editor