Banc Sabadell Shareholders Approve Sale of TSB
Banc Sabadell shareholders have given their overwhelming approval for the sale of the bank’s British subsidiary, TSB, to Banco Santander. The deal, valued at over €3.3 billion, was endorsed by 99.6% of shareholders at an extraordinary general meeting held at Fira de Sabadell. This meeting saw the highest shareholder turnout in 20 years, demonstrating the significant interest in the bank’s decision to exit the UK market.
Background of the Deal
The sale of TSB to Banco Santander is expected to close in the first quarter of 2026, although the timeline could be extended by mutual agreement if necessary. According to Sabadell president, Josep Oliu, the transaction includes an initial payment of €3.098 billion, which could increase depending on TSB’s performance. The final price of the shares could reach approximately €3.361 billion, making it a lucrative deal for the bank and its shareholders.
Independence from Takeover Bid
It’s worth noting that Sabadell is currently facing a hostile takeover bid from BBVA. However, the bank has emphasized that the sale of TSB is a separate transaction, independent of the takeover bid. Oliu stated, "This proposal is independent of the takeover bid and would be pursued under any circumstances due to its clear value, which benefits both the bank and its shareholders." The bank’s decision to sell TSB is driven by its desire to focus on the Spanish market and return capital to shareholders.
Regulatory Approval and Dividend Payout
The deal is subject to approval by banking regulators in the UK and the European Central Bank. Additionally, shareholders approved an extraordinary dividend of €0.50 per share, valued at approximately €2.5 billion. This dividend will be distributed to investors who remain shareholders as of the expected payment date in April 2026 and who choose not to accept BBVA’s takeover offer. Oliu urged investors to carefully consider their position amid the ongoing bid, emphasizing that only those holding shares at the time of payment will be eligible for this payout.
Future Plans
The bank’s decision to sell TSB is part of its strategy to focus on the Spanish market. Oliu noted that the transaction values TSB at 1.5 times its book value, above the UK market average of 1.2. Banc Sabadell acquired TSB in 2015 for £1.7 billion, and the sale is expected to return capital to shareholders and enable the bank to divest at a particularly opportune time.
Conclusion
In conclusion, the sale of TSB to Banco Santander marks a significant milestone for Banc Sabadell as it exits the UK market and focuses on its core Spanish business. With the overwhelming approval of shareholders, the bank is poised to move forward with the deal, subject to regulatory approval. The extraordinary dividend payout will also provide a significant return to investors, demonstrating the bank’s commitment to its shareholders. As the banking landscape continues to evolve, Banc Sabadell’s decision to sell TSB is a strategic move that will enable the bank to consolidate its position in the Spanish market and drive future growth.
