TSB share price: Spain’s Sabadell updates on takeover offer

on Apr 17, 2015
Updated: Oct 21, 2019

Spain’s Banco de Sabadell has updated investors on its proposed takeover of TSB Banking Group Plc (LON:TSB). The update comes after last month the two companies reached an agreement on the terms of a recommended cash offer to be made by Sabadell for the entire share capital of TSB.

TSB’ share price has been little changed in today’s session, having lost 0.18 percent to 334.50p as of 10:05 BST. The shares are underperforming the mid-cap FTSE 250 index which has inched in positive territory this morning.
Sabadell and TSB said in a statement this morning that the offer document containing the full terms and conditions of the takeover offer, together with the related Form of Acceptance, was being posted today to TSB’s shareholders. The companies explained that the first closing date of the offer was set on May 8, meaning that to accept the offer shareholders, need to complete and return the Form of Acceptance so that it is received by 13:00 BST on May 8.
TBS and Sabadell agreed the terms of the £1.7 billion offer last month, with the bid valuing the UK challenger bank at 340p per share. The price represents a 31-percent premium to the 260p at which TSB floated on the London Stock Exchange less than a year ago, spelling a hefty windfall for thousands of retail investors who took part in the offering and have held onto their shares. TSB’s share price had been hovering around the float price before news of the Spanish bank’s interest in the FTSE 250 lender surfaced in March.
Lloyds Banking Group Plc (LON:LLOY), which was forced to offload TSB as a condition of its taxpayer-funded bailout, has already agreed to sell its remaining shareholding in the challenger bank. While the FTSE 100 lender had originally intended to sell the branches to the Co-operative Bank, the deal fell through after a £1.5 billion black hole was discovered in the Co-op Bank’s accounts, forcing the Lloyds to seek a London listing for the unit instead.
As of 10:52 BST, Friday, 17 April, TSB Banking Group PLC share price is 334.65p.