BBVA chairman , Carlos Torres, on Monday urged shareholders to participate in the July 5 extraordinary meeting called to approve a share issue to finance its €12 billion ($13 billion) hostile takeover bid for competitor Banco Sabadell .

The bank is offering one newly issued BBVA share for every 4.83 Sabadell shares, representing a 30% premium over Sabadell's closing price of €1.73750 on April 29, valuing the bank at €12.28 billion. On that day, BBVA shares closed at 10.9 euros each.

BBVA wants to issue 1.126 billion new shares, which at current market prices of €9.778 would value Sabadell at about €11 billion.

Among BBVA's more than 726,000 shareholders, 62.8% are institutional investors, while the rest are retail shareholders.

Last month, BBVA turned hostile after its smaller rival rejected its initial offer.

The offer is subject to it acquiring more than 50.01% of Sabadell, shareholder approval and other regulatory approvals, and that could take six to eight months.

Sabadell has told its retail shareholders that the bank has "excellent prospects" on its own and that they may not have to make a decision on the BBVA takeover attempt until 2025.

(Reporting by Jesús Aguado; Editing by Emelia Sithole-Matarise; Spanish editing by Tomás Cobos)