(Adds details on payment)
MADRID, Feb 28 (Reuters) - Spain’s Banco Sabadell said late on Tuesday it had agreed to sell its Florida-based retail banking unit to Iberiabank Corp for $1 billion, leaving it with corporate and private banking operations in Miami.
The sale, expected to close in the second half of 2017, will generate a net capital gain of 447 million euros ($473 million) for Sabadell, the bank said in a statement to Spain’s stock market regulator.
Iberiabank will pay Sabadell at least $803 million in cash and also hand shares to the Spanish bank, with Sabadell taking a maximum 4.9 percent stake in the Louisiana-based financial holding company.
Sabadell, which also has a small presence in Mexico and expanded into the United Kingdom in 2015, entered retail banking in Florida with the acquisition of TransAtlantic bank in 2007. It is Spain’s fifth-biggest bank.
Reporting by Sarah White; Editing by G Crosse