Spanish stock market's board backs €2.8bn Swiss takeover offer

Paris-based Euronext had expressed interest, but has said it will not make a counter-bid

Screens show the performance of Spain's Ibex index on March 17 at the stock market in Madrid. Market operator BME's board accepted a €2.8bn offer from Swiss bourse SIX. EPA

The board of Spanish bourse BME on Wednesday backed a €2.8 billion (Dh11.2bn) takeover offer from Swiss exchange SIX.

BME said in a statement it was up to the shareholders whether to accept the €33.40 per share cash bid, but members of the board who held stock intended to accept the offer by tendering all their shares.

The board also said it intended to tender treasury shares, equivalent to 0.914 per cent of BME.

The acceptance period expires on May 11 at midnight, the Spanish bourse said.

SIX announced its bid in November.

"The board positively values ​​the offer price and considers that SIX's commitments and the conditions and precautions taken by the (Spanish) government are adequate to protect the appropriate development of the Spanish markets," BME said.

Any potential counteroffer could be made until five days before the deadline expires, according to Spanish takeover law.

The offer could also be adjusted to €32.98 per share, due to a proposed dividend payment of €0.42 per share, expected to be approved by BME's shareholder meeting on April 29 and paid on May 8.

Though Paris-based Euronext had expressed interest in buying BME, earlier this week it said it would not make a counter-bid.

The Spanish bourse also said on Wednesday that SIX's intention was to implement a new dividend policy, more aligned with its own distribution strategy.

Although SIX has not made any decision about BME's future payout policy, which currently stands at around 90 per cent of its net profit, it is likely to be lower, BME added.