BBVA buys additional 36.12% stake in Turkish arm Garanti

Banco Bilbao Vizcaya Argentaria SA acquired an additional 36.12% stake in Turkiye Garanti Bankasi AS, or Garanti BBVA.

The Spanish banking group said May 18 that it closed a voluntary tender offer for the shares it did not already own in Garanti BBVA. It secured 1,517,195,890 shares for a total consideration of roughly 22.76 billion Turkish lira. The transaction took BBVA's total interest in Garanti to 85.97%, according to a regulatory disclosure.

BBVA initially offered 12.20 lira per Garanti share but sweetened the price to 15 lira in April.

The transaction will result in a roughly 23-basis-point decrease to BBVA's fully loaded common equity Tier 1 ratio, which stood at 12.70% at the end of March, the bank said.

As of May 18, US$1 was equivalent to 15.95 Turkish lira.