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Scotiabank Chile launches tender offer to acquire all of BBVA Chile shares

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Scotiabank Chile launches tender offer to acquire all of BBVA Chile shares

Scotiabank Chile on June 7 is launching a tender offer to acquire all of Banco Bilbao Vizcaya Argentaria Chile SA as it moves to the last stages of its purchase of the bank, according to regulatory filings.

Under the plan, Scotiabank unit Nova Scotia Inversiones Limitada offers to buy 100%, or 413,822,027, of BBVA Chile's shares for a total amount of $3.01 billion, according to the June 5 exchange rate of the Chilean peso. The offer has a term of 30 days, Scotiabank said.

In December 2017, Banco Bilbao Vizcaya Argentaria SA accepted Scotiabank's offer to acquire the Spanish lender's 68.19% ownership in the Chilean bank for about $2.2 billion.

Scotiabank, owned by Canada's Bank of Nova Scotia, said it was still negotiating a shareholder agreement with the Said family of Chile, which holds a 31.6% stake in BBVA Chile and who have the option of controlling up to 25% of the merged entity.

According to the filings, the negotiation entails a contract that would give the Saids a right of first offer, a tag-along right and put option.

On June 1, Chile's competition watchdog, the FNE, authorized Scotiabank to buy BBVA Chile, following nods from other regulators in Chile and Canada.

Market sources told Diario Financiero that Scotiabank would pay more than $6 million for 0.2% of BBVA Chile's shares, which are in the hands of independent investors.