BBVA moves for 50.15% shares in Turkish bank Garanti

Spanish bank sees Turkey as strategic, attractive market with economic growth potential, commercial ties with Europe

The Spanish bank that owns a 49.85% share of Garanti BBVA launched a voluntary takeover bid on Monday for the rest of the stakes in the Turkish lender at a price of 12.20 Turkish liras ($1.22) per share.

Banco Bilbao Vizcaya Argentaria (BBVA) noted the price represents a premium of 34% over the volume-weighted average price of the past six months, a sum that it said was very attractive to shareholders.

Carlos Torres Vila, BBVA’s chairman, said the transaction was a great change to invest in BBVA’s franchise in Turkey and create value for the bank’s shareholders.

“Assuming that all Garanti BBVA shareholders accept the offer, and considering the profit estimated by analysts for the Group and the Turkish franchise, the transaction would increase profit per share by 13.7 percent in 2022, and the tangible book value per share by 2.3 percent as of September 2021,”the bank said.

Underlining that Turkey is a strategic market, it added: “While it faces some volatility in the short term, the country’s economic growth potential, its population pyramid, its commercial ties with Europe and the low banking penetration, they all make it an attractive market in the long term.”

It said Garanti BBVA is the main private bank in Turkey and the largest by market capitalization.

The Spanish bank made its first investment in Garanti in 2011 by buying 25.01% of shares. It expanded its stake in the lender in 2015 and again in 2017, reaching 49.85%.


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