PARIS (Agefi-Dow Jones) – The French bank BNP Paribas announced on Monday that it had reached an agreement with Banque de Montreal to sell to the Canadian establishment 100% of the commercial banking activities in the United States of its subsidiary Bank of the West for 16.3 billion US dollars, or 14.4 billion euros.
The amount of the transaction represents “1.72 times the value of the tangible net assets of Bank of the West and 20.5% of the market capitalization of BNP Paribas, for an average contribution of Bank of the West to the result before tax of the group in recent years by around 5%, “BNP Paribas said in a press release.
The French bank added that the transaction would generate an exceptional capital gain, net of tax, of around 2.9 billion euros and have a positive effect of around 170 basis points on its CET1 capital ratio.
The operation should be completed in 2022, subject to the usual conditions precedent, and will be followed by a share buyback program “in order to offset the expected dilution of net earnings per share,” BNP Paribas said.
The bank did not communicate the amount of this share buyback program, but stressed “as an indication” that a “program of around 4 billion euros would completely neutralize the dilution of net earnings per share” .
-Valérie Venck, Agefi-Dow Jones; +33 (0) 1 41 27 48 25; [email protected] ed: JXM
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December 20, 2021 02:21 ET (07:21 GMT)