Santander to Make Cash Offer for Outstanding Shares in Mexico Subsidiary
March 26 2021 - 2:57AM
Dow Jones News
By Mauro Orru
Banco Santander SA said Friday that it intends to make a cash
offer to buy the outstanding shares of its Mexican subsidiary that
it doesn't already own for a total consideration of around 550
million euros ($647 million).
The Spanish bank said the offer would target about 8.3% of its
Mexican subsidiary's share capital, with the transaction expected
to be completed in the second or third quarter.
Santander said the deal would bolster its growth profile and
capacity to generate capital, improving earnings per share by 0.8%
in 2023.
The transaction is also expected to have a return on invested
capital of about 14%, and reduce the group's CET1 ratio by about
eight basis points, it said.
Also, Santander confirmed business has remained strong in the
first quarter, with revenue in line with that of the fourth quarter
of 2020.
The bank said it expects an underlying return on tangible equity
of about 10% by the end of 2021.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
March 26, 2021 02:42 ET (06:42 GMT)
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