MATERIAL DISCLOSURE

Pursuant to article 228 of the consolidated text of the Securities Market Act, approved by Legislative Royal Decree 4/2015 of 23 October, and as a continuation to the material disclosures published on 15 and 24 March 2017 with registry numbers 249535 and 249972, Bankia, S.A. reports that on 26 June 2017 the boards of directors of Bankia, S.A. and Banco Mare Nostrum, S.A. formulated and signed the common draft terms of merger in relation to the merger by absorption of Banco Mare Nostrum, S.A. by Bankia, S.A., a copy of which is annexed to this material disclosure.

Inscrita en el Registro Mercantil de Valencia, Tomo 9.341, Libro 6.623, Folio 104, Hoja: V-17.274. CIF: A-14010342

The resolution of the Board of Directors of Bankia, S.A. was adopted having regard to the conclusions reached by its Committee of independent directors set up to monitor and supervise the merger process (see material disclosure dated 24 March 2017 with registry number 249972). At the Board meeting held on 26 June 2017, this Committee reported favourably on the planned merger.

The proposed exchange ratio, which has been determined based on the real value of the two entities' own funds, is ONE (1) ordinary share of Bankia, S.A., with a par value of one euro per share, for every SEVEN POINT EIGHT TWO NINE EIGHT SEVEN (7,82987) ordinary shares of Banco Mare Nostrum, S.A., with a par value of one euro per share, with no additional cash consideration.

On 26 June 2017, Morgan Stanley and Rothschild, retained by Bankia, S.A. for this purpose, issued fairness opinions for the Board of Directors of Bankia, S.A. and the abovementioned Committee of independent directors, respectively, concluding that on said date and based on the elements, limitations and assumptions contained in each opinion, the proposed exchange ratio is fair from a financial point of view for Bankia, S.A.'s shareholders.

Both banks will apply to the Companies Registry in Valencia for the appointment of a single independent expert to prepare a single report on the common draft terms of the merger in accordance with applicable laws and regulations.

The planned merger will be submitted to the General Meetings of Shareholders of Bankia, S.A. and Banco Mare Nostrum, S.A. in due course for approval and remains in any case conditional upon obtaining authorisation from the Minister of Economy, Industry and Competitiveness and all other required authorisations.

The above is notified as a material disclosure for all pertinent purposes.

Madrid, 27 June 2017

This document is a translation of an original text in Spanish. In case of any discrepancy between the English and the Spanish version, the Spanish version will prevail.

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PROYECTO COMÚN DE FUSIÓN ENTRE BANKIA, S.A. (como sociedad absorbente) Y BANCO MARE NOSTRUM, S.A. (como sociedad absorbida) 26 de junio de 2017

ÍNDICE

  1. INTRODUCCIÓN - JUSTIFICACIÓN DE LA FUSIÓN 1

  2. DESCRIPCIÓN DE LA FUSIÓN PROYECTADA 2

  3. IDENTIFICACIÓN DE LAS SOCIEDADES INTERVINIENTES 2

  4. Sociedad absorbente 2

  5. Sociedad absorbida 2

  6. CANJE DE FUSIÓN 2

  7. Tipo de canje 2

  8. Forma de atender el canje; ampliación de capital 3

  9. Procedimiento de canje 4

  10. Mecanismo orientado a facilitar la realización del canje 5

  11. APORTACIONES DE INDUSTRIA O PRESTACIONES ACCESORIAS 5

  12. TÍTULOS Y DERECHOS ESPECIALES 5

  13. VENTAJAS ATRIBUIDAS A LOS EXPERTOS INDEPENDIENTES O ADMINISTRADORES 6

  14. DERECHOS DE LAS NUEVAS ACCIONES 6

  15. FECHA DE EFECTOS CONTABLES 6

  16. ESTATUTOS DE LA SOCIEDAD RESULTANTE 6

  17. VALORACIÓN DE LOS ACTIVOS Y PASIVOS DE LA SOCIEDAD ABSORBIDA 7

  18. BALANCES DE FUSIÓN Y CUENTAS ANUALES 7

  19. CONSECUENCIAS SOBRE EL EMPLEO, IMPACTO DE GÉNERO EN LOS ÓRGANOS DE ADMINISTRACIÓN E INCIDENCIA EN LA RESPONSABILIDAD SOCIAL DE LA EMPRESA 8

  20. NOMBRAMIENTO EN EL CONSEJO DE ADMINISTRACIÓN DE

    LA SOCIEDAD RESULTANTE 8

  21. RÉGIMEN FISCAL 8

  22. CONDICIONES SUSPENSIVAS 9

  23. EXPERTO INDEPENDIENTE 9

  24. PUBLICIDAD E INFORMACIÓN 9

  25. PERIODO INTERMEDIO HASTA LA EJECUCIÓN DE LA FUSIÓN 10

  26. Objeto 10

  27. Compromiso de gestión ordinaria 10

  28. Actuaciones Restringidas 11

  29. Entidad de Seguimiento Independiente 15

  30. Información recíproca 17

  31. Responsabilidad 17

  32. -3 -

Bankia SA published this content on 27 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 June 2017 06:29:09 UTC.

Original documenthttp://www.bankia.com/recursos/doc/corporativo/20170123/ingles/20170627-hr-bkia-proyecto-fusion-eng.pdf

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