Arab Banking Corporation and BBVA sell stakes in Banco Atlántico to Banco de Sabadell

Banco de Sabadell will offer Euro 71.79 per share of Banco Atlántico in cash, valuing Banco Atlántico at Eur1,500 million.

After 19 years of presence in the Spanish banking market through Banco Atlántico, ABC has decided to sell its interest in this subsidiary. This transaction is framed in ABC's global strategy of focusing on its core Arab related business, where ABC is a leader and has clear competitive advantages. During this time Banco Atlántico has become a focused and profitable bank in Spain and abroad. However, considering the challenges posed by consolidation, ABC believes that Banco Atlántico has a greater future as part of a leading financial group such as Banco de Sabadell.

The transaction is subject to the approvals of the Bank of Spain, the National Commission for the Securities Market (CNMV - Comisión Nacional del Mercado de Valores), the Spanish competition authority (Autoridades Española de Competencia) and the Spanish Directorate for Insurance and Pension Funds (Dirección General de Seguros y Fondos de Pensiones).

Deutsche Bank AG (London) and Clifford Chance advised ABC in connection with this transaction.

Mr Al-Kindi, Chairman of ABC, said: "This transaction allows ABC to further focus on its main strengths and devote scarce resources to our core markets. We are confident that Banco de Sabadell will allow Banco Atlántico to grow faster and profitably in an increasingly competitive market."