MADRID (Reuters) -Sabadell shareholders on Wednesday unanimously approved the sale of its British unit TSB to Santander in what is seen as a defensive move as it seeks to stop BBVA's around 15 billion euro ($17.36 billion) hostile takeover bid.

Sabadell had agreed last month to sell TSB to Santander for an initial 2.65 billion pounds ($3.64 billion) in an all-cash deal.

The sale would allow Sabadell to focus on the Spanish market, "where the bank has a greater growth capacity", its Chairman Josep Oliu told shareholders before the vote.

Sabadell plans to hand most of the cash it will get from the sale to its shareholders as a special 2.5 billion euro dividend, which has to be submitted to shareholders in another vote later on Wednesday.

Sabadell had bought TSB in 2015 for 1.7 billion pounds ($2.26 billion).

($1 = 0.8639 euros)

($1 = 0.7528 pounds)