Banca Civica – Take over Spanish style
A couple of months ago I looked at Spanish “Thrift conversions”, especially Banca Civica which was a potential take over candidate.
Now, the take over was finally announced by Barcelona based Caixabank, however with a significant discount to the prevailling market price:
The share valuation for Civica in the transaction is 27 percent lower than the 2.70 euro-per-share price of its initial public offering in July, in which it raised 600 million euros. CaixaBank has a market value of 12.1 billion euros
The offered 1.97 EUR is a 11% discount to the previous day closing price and equally an all time low for the Banca Civica stock since its IPO.
So this is something to keep in one’s mind: You can basically do takeovers/tender offers in Spain well below current market prices.