(Corrects paragraph two to show Bankia to issue 205.7 million shares, not 205.7 shares)
MADRID, June 27 (Reuters) - Spain’s Bankia said on Tuesday it has agreed to acquire Banco Mare Nostrum (BMN) in a 7.8-for-1 share swap deal which values the smaller lender at around 825 million euros ($924 million).
Bankia will issue a maximum of 205.7 million new shares to help finance the deal which it said would increase earnings per share by 16 percent after three years and would be positive after one year.
The deal should be finalised by the end of this year, Bankia said in a statement to the market regulator.
$1 = 0.8928 euros Reporting by Paul Day; Editing by Tomas Cobos