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CaixaBank sells shares to fund Banco BPI takeover

CaixaBank SA placed 585 million shares, representing9.9% of its share capital, at €2.26 apiece through an accelerated bookbuildingoffering to private investors as it gathers funds to finance its for .

The share sale price was adiscount of 3.67% to the Sept. 22 closing price. The bank said it expects about€1.32 billion from the transaction. J.P. MorganSecurities Plc and Morgan Stanley & Co. International Plc served as bookrunners on the transaction.

The bank on Sept. 21 increasedits offer for Banco BPI to €1.134 per share from after the Portugueselender's shareholders approved the removal of a 20% cap on the bank's voting rights, akey condition for the bid.

Before the shareholder meeting,Banco BPI had offered to sell a 2% stake in Angolan unit to Angolanmobile operator Unitel, which businesswoman Isabel dos Santos indirectlycontrols, in a bid to gain support for the proposal to remove the voting rightscap.

Dos Santos, who owns 18.6% of Banco BPI,on Sept. 22 indicated her approval for Unitel to take control of BFA, Reutersreported the same day. The sale of the stake wouldraise Unitel's stake in the Angolan bank to 51%.  

In an email to the newswire, dos Santos said:"I salute the solution found to resolve the situation at BPI, whichreflects shareholders' consensus."

With the Portuguese lender's stake in BFA todrop to below 50% following the sale to Unitel, it will no longer consolidatethe Angolan bank on its books, allowing it to avoid further provisions on riskyassets, the newswire noted.

CaixaBank said that in a situation where it controlled 100%of Banco BPI, its pro forma phased-in common equity Tier 1 ratio would be 11.6%as of June 30 and the fully loaded CET1 ratio 10.8%.