Last minute: BBVA raises its offer on Garanti shares

BBVA has updated its voluntary takeover offer to acquire Garanti BBVA as a whole. As a result, BBVA, which had previously offered 12.20 TL per share, increased its offer to 15 TL.

Garanti BBVA shares, traded on the Borsa Istanbul, closed last week at 14.19 lira. In other words, BBVA made an offer at a 5.7% premium to Friday’s close. Moreover, the offer of TL 15 per share brings the value of the bank to TL 64.3 billion.

Shares traded in Borsa Istanbul today started the day with a 5% increase with the effect of this statement.

In the statement made to the public disclosure platform by Garanti BBVA, it was stated that the bidding process will end on May 18.

The statement in question included the following statements:

With regard to “the voluntary takeover bid (“Voluntary Takeover Bid”) launched by BBVA on the entire capital of Garanti BBVA, the Fourth Press Release on BBVA’s Public Takeover Bid (II -26.1) (“Announcement”) It has been announced that a request for authorization has been made to the Capital Markets Board (“CMB”) in terms of the Voluntary Takeover Bid and the information memorandum, and the March 31, 2022, with CMB letter numbered E-29833736-110.05.05-19391 and dated March 31, 2022. Has approved the information form in accordance with the fourth section of the press release. The voluntary purchase was determined at 12.20 TL for each share with a par value of 1.00 TL, and the voluntary tender offer process for 20 working days started on April 4, 2022.

BBVA’s Board of Directors has decided to increase the voluntary tender offer price, determined in cash, to TL 15.00 for each BBVA Guaranteed share with a nominal value of TL 1.00 from at the price announced at the beginning (12.20 TL).

Following the increase in the price of the Voluntary Takeover Bid and in accordance with the Announcement, the period of the Voluntary Takeover Bid has been extended by two weeks (the last day of the Voluntary Takeover Bid process will be May 18, 2022). The said date has been determined taking into consideration the public holidays which will last from May 2, 2022 to May 4, 2022 in Turkey (including May 4, 2022), and in case of an additional public holiday, the relevant date shall be updated. In accordance with article 22/4 of the announcement, no further changes may be made to the proposal during the said two-week extension period.

The difference of 2.80 TL for each share will be paid to investors who have already sold their shares to BBVA under the voluntary takeover process, within two business days (until May 6, 2022) following the last day of the initial takeover bid. process.”

RECORD EARNINGS ANNOUNCED

Meanwhile, Garanti BBVA announced its financial results for the first quarter of 2022. As a result, the bank announced a record profit of TL 8.21 billion in the first quarter of the year. Guaranteed BBVA increased its profit by 107% on a quarterly basis and by 206% on an annual basis.

The deposit base increased by 12% in the first quarter of 2022 and reached 651 billion 582 million 488 thousand TL.

Selected consolidated financial highlights of Garanti BBVA – March 31, 2022

Main balance sheet items

Current period
31.03.2022

Previous period
31.03.2021

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Total assets

953 347 155

850 475 600

12.1%

Credits*

566 148 088

492 589 718

14.9%

-Lending directly

548 041 373

475 285 220

15.3%

-Non-following credits

18,106,715

17,304,498

4.6%

Customer deposits

651 582 488

580 376 196

12.3%

equity

96,965,406

80 300 855

20.8%

*Excluding leasing and factoring receivables.

Main income items

Current period
31.03.2022

Previous period
31.03.2021

Switch

Net interest income

14,243,833

6,844,703

108.1%

Operational expenses

5,285,523

3,279,336

61.2%

-Personal expenses

2,023,051

1,220,870

65.7%

-Other operating expenses

3,262,472

2,058,466

58.5%

Net fees and commissions

3,206,043

2,067,219

55.1%

net profit

8,262,614

2,697,476

206.3%

“CONTINUED TO PROVE ITS DURABILITY”

Garanti BBVA Managing Director Recep Baştuğ, whose views were expressed in the bank’s written statement regarding the results, said: “We are going through difficult times with increased uncertainties and risks in the global and local economy. . In this environment, both the Turkish banking sector and Garanti BBVA continued to show resilience. The financial sector plays a vital role for the economy to develop on a sound basis,” he said.




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