Scotia, BBVA pick new board after merger

Scotia, BBVA pick new board after merger

M&A People Chile

Scotiabank and BBVA Chile have elected a number of board members to the newly-branded Scotiabank Azul.

Jose Said Raffie was named President of the entity, while Ignacio Deschamps was named Vice President, Scotiabank Azul said in a securities filing.

The new firm, a result of Scotiabank's $2.2bn offer to BBVA Chile, must also increase the number of regulatory directors to 11 from nine.

The directors comprise Saffie and Deschamps, along with:
- Jaime Said
- Ricardo Cruells
- Salvador Said
- Ernesto Viola
- Gonzalo Said
- Claudio Hernandez
- Felipe Montt
- Nicolas Tagle Swett and
- Guillermo Mackenna

Scotiabank's offer last November was a move that doubled its market share in Chile to 14%. The equity value was roughly $3.2bn.

At the time, BBVA's Spanish parent held a 68.2% stake in its Chilean subsidiary, while the Said family had the rest. The offer from Scotiabank was subject to the approval of BBVA's minority shareholders.

The deal affects Scotiabank's Tier One capital ratio by 135bp. For BBVA, its Tier One capital ratio would improve 50bp and a sale would give it a net capital gain of €640m ($747.5m).

Citi was financial advisor to BBVA and Lazard served Scotiabank, according to an M&A source.

This marks the third recent move from Scotiabank throughout the Andes coutries. In May, the Canadian lender agreed to buy a 51% stake in Banco Cencosud in Peru for roughly CAD130m ($102m) and in February it agreed to pay Citi for its retail and credit card businesses in Colombia.

The news that moves markets

Read the day's transactions and rumors right in your inbox.

Start free trial