Santander to Acquire Remaining Shares in Its Brazilian Unit in Share Swap
Details of Santander's Share Swap Offer
Overview of the Acquisition Plan
SAO PAULO, July 30 (Reuters) - Santander said on Thursday it intends to launch an offer to acquire the remaining shares it does not already own in its Brazilian unit, through a share swap.
Current Ownership and Offer Structure
The Spanish bank, which owns some 90% of its Brazilian subsidiary, said in a statement the offer "will be voluntary, does not seek the delisting of Santander Brasil and is not subject to a minimum acceptance condition."
Premium and Transaction Value
Santander is offering Santander Brasil's shareholders a 15% premium over Thursday's closing price in a transaction valued at up to 1.9 billion euros
Expected Impact on Group Financials
The transaction is expected to "strengthen the group's long-term earnings growth and organic capital generation," while having a neutral impact on capital ratio, the Spanish bank added.
Share Issuance and Capital Implications
If all minority shares are tendered, the Spanish parent will issue about 156 million new shares, equivalent to about 1.1% of its current share capital, it said.
Additional Information
($1 = 0.8678 euros)
(Reporting by Andre Romani in Sao Paulo and Abu Sultan in Bengaluru; Editing by Sahal Muhammed and Natalia Siniawski)