BOGOTA/MADRID, July 19 BBVA, Spain's
second-biggest bank, has agreed to sell its Panama unit to
Colombia's largest banking conglomerate, Grupo Aval, in
a deal worth $646 million.
In a filing to Spain's stock market regulator, BBVA said on
Saturday it would receive $490 million in cash and $140 million
paid through a dividend from its Panamanian arm before the sale.
It will receive a further $16 million as an adjustment for
the earnings made by the unit between June 1 and Nov. 30 when
the deal is expected to be closed.
The Spanish lender, which has been shedding its less
profitable assets in Latin America in a bid to boost its capital
and offset the weakness of its recession-hit home market, said
it would book a net profit of 150 million euros ($197
million)for the sale.
In a separate regulatory filing, Aval said the 100 percent
stake it would buy in BBVA Panama was subject to government
approval, and would be made via its subsidiary Leasing Bogota
BBVA Panama has around $2 billion in assets, according to
Grupo Aval's filing.
In late June, Grupo Aval bought Grupo Financiero Reformador
in Guatemala for $411 million, a transaction carried out via its
Central American subsidiary BAC Credomatic.