Banc Sabadell has closed the sale of its British subsidiary TSB to Banco Santander for a final amount of 2.860 billion pounds. The transaction amounts to about 3.300 billion euros as stated in a statement published with the National Securities Market Commission.
Adjustments in price and shareholder remuneration
The value of the operation was initially set at approximately 3.05 billion euros. At closing, the tangible net book value generated by TSB up to that point, equivalent to approximately 242 million euros, was added. The entity has confirmed that it will pay an extraordinary dividend of 50 cents per share on May 29. This decision, approved at the Shareholders' Meeting last August, allows for a total shareholder remuneration of approximately 6.45 billion euros between 2025 and 2027, if ordinary dividends are included along with planned share buybacks and redemptions.
The financial management highlights the benefits of the exit. The results include a capital gain of 300 million euros and generate more than 400 basis points of capital.
Strategy and statements of the executive leadership
"Very relevant for the British financial sector" - Marc Armengol, next CEO of Banc Sabadell
The CEO César González-Bueno has valued the operation as "attractive for all parties". He has also pointed out that the closure is timely to allow the bank to focus its strategy on Spain as its natural market. For his part, the until now CEO of TSB and next general director, Marc Armengol, has affirmed that the transaction is very relevant for the British financial sector. He has added that TSB today is a success story in the United Kingdom.
"TSB today is a success story in the United Kingdom" - Marc Armengol
Future commitments and commercial presence
The agreement includes a non-compete commitment in the British market for 24 months following the closing. Nevertheless, Banc Sabadell will maintain a branch in the United Kingdom to support companies in their foreign business. The entity will be able to continue operating in the market through the corporate banking division.
In the operation, instruments of capital and outstanding securities issued by TSB for an amount of 1,217 million pounds have also been transferred to Santander UK. The bank recalls having acquired TSB in 2015 for 1,700 million pounds and having received more than 600 million euros in dividends from the subsidiary during the last decade.