Bankia SA - EGM 01 December 2020
In item 1, shareholders are called to approve the merger by absorption of Bankia SA (Bankia, or the Company) by CaixaBank SA (CaixaBank). After the merger, Bankia will be dissolved and all of the Company's assets and liabilities will be transferred en bloc to CaixaBank.
Bankia's shareholders will receive a premium of 20.5%, in line with the average premium of 21% observed in similar transactions in Spain in the last 7 years. One Bankia share will be equivalent to 0.6845 CaixaBank shares.
The merger is expected to:
- generate revenue synergies (€290 million annually)
- save costs (€770 million by 2023)
- lower their non-performing load ratio to 4.1%
- achieve a CET1 ratio of 11.6% (by the first quarter of 2021) and
- improve ROTE in 2022.
ECGS believes that Bankia's valuation and the exchange equation are fair, and represent a good opportunity for Bankia shareholders given the Company's history and the expected economic and financial outcome from the merger. Hence, we recommend support.
Bankia is a financial institution based in Spain. Co. is primarily engaged in operations in the banking sector. Co.'s business operations are structured into seven areas: Retail Banking, Business Banking, Private Banking, Asset Management and Bancassurance, Capital Markets and Holdings. Co. offers financial products and services to various customer segments, such as individuals, small and medium enterprises, large corporations, as well as public and private institutions. As of Dec 31 2014, Co. had total assets and total customer deposits of Euro233,648,603,000 and Euro106,806,698,000 respectively.
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