MADRID: The Fifth Largest Spanish Bank lender Sabadell clinched a deal of £1.7bn with British bank TSB in one of the largest cross-border banking deals since the financial crisis of 2007-09.
In a statement both banks announced that they have agreed terms on the bid. The takeover will see Sabadell pay 340 pence per TSB share, 31% higher than TSB floated at last June.
The deal will provide a major boost to Lloyds Banking Group, which spun TSB off as a result of its £20bn taxpayer bail-out in 2008. It will dispose its remaining 50-percent stake in TSB by the end of this year.
Lloyds Banking Group, which holds a 50 percent stake in TSB, said it had agreed to sell a 9.99 percent shareholding to Sabadell and had given an irrevocable undertaking to sell the remainder of its stake to the fifth largest Spanish bank. Sabadell said that it would raise 1.6 billion euros of new capital at 1.48 euros per share to help fund the deal. ($1 = 0.6784 pounds)
