The voluntary share-swap offer could be worth up to 1.9 billion euros, would leave Santander Brasil listed, and helped lift Santander shares 15.2% in Brazil.
Santander plans to launch a voluntary share-swap offer for the Santander Brasil shares it does not already own, offering minority investors a 15% premium to Thursday’s closing price. The Spanish bank, which already owns about 90% of its Brazilian unit, said the transaction could be worth up to 1.9 billion euros, would not seek to delist Santander Brasil, and would not require a minimum acceptance level. Santander said the move is expected to strengthen the group’s long-term earnings growth and organic capital generation while having a neutral effect on its capital ratio. If all minority shares are tendered, the bank would issue about 156 million new shares, equal to roughly 1.1% of its current share capital. In Brazilian trading, Santander shares jumped 15.2% after the announcement, helping lift the Ibovespa 0.5% to 177,999.