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Deals

Sabadell sell its Andorran business to Mora Banc for 67 million euros

FILE PHOTO: The Banco Sabadell logo can be seen behind leaves on top of a building outside Madrid, Spain, April 13, 2016. REUTERS/Andrea Comas

MADRID (Reuters) - Spain’s Banco Sabadell on Thursday said it had agreed to sell its 51.6% stake in its Andorran business to Mora Banc Grup for 67 million euros.

Sabadell said that the final amount would be set upon verification of certain financial figures as of June 30, 2021 and it expected to close the transaction in the fourth quarter.

Sabadell operates in the tiny principality of Andorra that borders Spain and France via a 51%-owned subsidiary BancSabadell d’Andorra, which manages total resources of around 1.8 billion euros ($2.2 billion).

The Spanish lender also said Mora Banc had committed to submit an offer to the minority shareholders of BancSabadell d‘Andorra on the same economic terms as those agreed with Banco Sabadell.

Sabadell said it expected the deal to increase its common equity Tier 1 (CET1) fully-loaded capital ratio by 7 basis points.

Reporting by Jesús Aguado, editing by Belén Carreño and David Evans

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