Turns out, BPI is worth 24% more than what CaixaBank offered

BPI is already worth 24% more than what CaixaBank offered in last February’s takeover bid. The institution headed by Pablo Forero shows a much higher value in the Spanish Bank’s accounts than what was payed to shareholders, a difference resultant from the assessment adjustment of the balance sheet value. This update allowed CaixaBank to earn 256 million euros in the second quarter.

The Portuguese newspaper Jornal de Negócios disclosed that this surplus, which contributed around one third to the quarterly reports, could have been even larger if CaixaBank had made a less conservative assessment of BPI’s assets and liabilities. When the takeover bid was concluded, the bank was negotiating a discount on its balance sheet value.

In any takeover bid, the price to pay can be set in accordance with the average listing of the last six months. By the time of BPI’s takeover bid, the bank was still facing a lot of doubts about its exposure to Angola, which had to be reduced, as the European Central Bank demanded. The stock market value stood below the balance sheet value, and the Spanish bank is now giving BPI the same assessment in their accounts.

When BPI’s takeover bid was launched, some of BPI’s shareholders, especially the smallest, who argued against the 1.134 euros per share that CaixaBank would pay. It was the case of Violas Ferreira Finance, a company which always stood against the takeover bid. By then, the shareholder believed the 2% sale of BFA to Isabel dos Santos for 28 million euros benefited the businesswoman, harming other shareholders.