Toronto-based Bank of Nova Scotia made a binding offer to acquire Spanish lender Banco Bilbao Vizcaya Argentaria SA's 68.19% stake in Banco Bilbao Vizcaya Argentaria Chile SA
The offer does not include the automobile financing activity of Grupo Forum, which will continue to be 100% owned by BBVA.
Scotiabank said that the deal will double its market share in Chile to roughly 14%, making it the third-largest non-state-owned lender in the country. The transaction would also impact the Canadian lender's common equity Tier 1 capital ratio by around 100 basis points.
BBVA CEO Carlos Vila deemed the deal as "financially attractive" for the group. He added that it is expected to generate a net capital gain of about €640 million and will add 50 basis points to the group's CET1 capital ratio.
BBVA is willing to accept the offer provided that the Said family, which holds a 31.62% stake in BBVA Chile, does not exercise its right of first refusal. The Said family has the right to exercise its tag-along rights, which allows it to sell its shares in BBVA Chile to Scotiabank on the same terms as BBVA. Should the Said family do so, the transaction would impact Scotiabank's CET1 capital ratio by approximately 135 basis points upon completion, Scotiabank said.
Scotiabank had assets of C$906.33 billion as of July 31; BBVA Chile had assets of 14.06 billion Chilean pesos as of Sept. 30.
As of Nov. 27, US$1 was equivalent to 638.00 Chilean pesos.
