Santander Holdings USA to Buy Remaining Stake in Subsidiary

By Olivia Bugault

Banco Santander SA said Tuesday that its U.S. subsidiary Santander Holdings USA, Inc. will acquire the remaining shares it doesn't already own in Santander Consumer USA Holdings Inc.

According to the agreement between the two subsidiaries of the Spanish bank, Santander Holdings USA will buy the outstanding shares in Santander Consumer USA Holdings for $41.50 apiece via an all-cash tender offer, the company said.

The offer price is a 14% premium compared with the closing price of Santander Consumer USA Holdings on July 1, it said.

Santander Holdings USA already owns a roughly 80% stake in Santander Consumer USA Holdings, the bank said.

"The estimated capital impact at closing to Banco Santander's [common equity Tier 1] ratio would be a decline of approximately 10 [basis points], and the transaction is expected to be accretive to its earnings per share by approximately 3% in 2022," Santander said.

The transaction--which includes the tender offer and a "second-step merger"-- should close by late October or the fourth quarter of the year.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

August 24, 2021 01:37 ET (05:37 GMT)

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