Banco Santander Looks to Take Over Mexican Subsidiary
April 12 2019 - 2:01AM
Dow Jones News
By Anthony Shevlin
Spain's Banco Santander SA (SAN.MC) said Friday that it intends
to make an offer to acquire all the shares it doesn't already hold
in its Mexico subsidiary, Banco Santander SA Institucion de Banca
Multiple Grupo Financiero Santander Mexico (BSMX.MX).
The Spanish bank said the offer would be for up to approximately
25% of the subsidiary's share capital, and that it expects the deal
to positively contribute to its CET1 ratio, be neutral on earnings
per share and have a return on investment of around 14.5%.
"The offer will be voluntary and, therefore, minority
shareholders of Santander Mexico may choose whether or not to
participate in the transaction, which will not be subject to a
minimum acceptance level," the bank said.
Shareholders who accept the offer at the expected consideration
would receive 0.337 newly issued shares of Banco Santander for
every share of Santander Mexico, as well as 1.685 American
Depository Shares of Banco Santander for every ADS of Santander
Mexico.
The exchange ratio implies a 14% premium based on the closing
price of both banks' shares on April 11, or 22% based on the past
month's volume weighted average price, the bank said.
The exchange offer is expected to be launched and settled in the
second half of the year.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com;
@anthony_shevlin
(END) Dow Jones Newswires
April 12, 2019 01:46 ET (05:46 GMT)
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