The Fund for Orderly Bank Restructuring (Frob) has definitively blessed the absorption of Bankia by CaixaBank by concluding that it will facilitate the recovery of part of the billions of public euros allocated to the rescue of the entity in the year 2012.
The public body has issued a report this Friday in which it explains that it has carried out an in-depth analysis of the merger process published by both banks on September 17, for which it has had work from different experts and the Favorable recommendation from investment bank Nomura.
His conclusion is that “the merger would improve the value of the indirect stake in Bankia and would have a positive effect on the prospects for recovering aid in future divestments”.
The Frob has also agreed to propose the appointment of Teresa Santero Quintilla as director of the new entity in representation of the 16% stake that the State will maintain in the shareholders. Santero was Secretary General of Industry during the second term of Josà © Luis RodrÃguez Zapatero. She has a PhD in Economics from the University of Illinois at Chicago and currently works as a professor at the Universidad Instituto de Empresa and an independent advisor to the ICO.
Public participation in Bankia is currently around the 2,280 million euros weighed down by the collapse of the bank’s price in particular, and of the financial sector as a whole in general. In the last five years, the group’s share price has risen from 5 to 1.16 euros, in a context of negative interest rates that has shaken the banking business model. The current value is far from the 9,560 million euros that the Frob aspires to recover after the sale of the bank’s securities to partially offset the more than 24,000 million public invested in the group.
For its part, BDO has also concluded that the valuation methods used to exchange shares between both groups were carried out correctly and that the real value of the equity contributed by the defunct Bankia coincides with the capital increase that CaixaBank intends to carry out.
Same place and two days apart
The same scenario two days apart. The boards of directors of Bankia and CaixaBank have given their final approval to the merger of both entities and the only thing left is for it to be endorsed by the shareholders of both banks. It will be during the next December 1 (Bankia) and 3 (CaixaBank) at the Valencia Conference Center, a city in which both groups have their headquarters and which will be a neutral zone in the operation that combines Madrid interests and Catalan.
Both groups have communicated to the CNMV the ‘green’ approval of the boards of directors and convened two meetings of shareholders, in which they will prioritize telematic assistance due to the pandemic situation in which the country is plunged.
The approval at the Board will boost the operation, which according to the managers of both groups should be completed in the first quarter of 2021. At the customer level, the banks hope to have the technological platform fully integrated by the end of that year.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
