Bank Santander has communicated this morning to the CNMV (National Securities Market Commission) its intention to launch a takeover bid on the 25% it does not control in its subsidiary bank in Mexico. The price offered places the value of the operation around the 2,500 million euros. The presiding entity Ana Botín it controls 75% of the entity, so that with the takeover bid it could happen to own 100% if all the minorities accept the offer.
The price offered represents a premium of 22% compared to the price of the last days
The purchase of the package would be made through Banco Santander's own shares, which will force the entity to make a capital increase between 2,000 and 2,500 million. This figure will vary according to the percentage of minority shares that decide to go to the takeover bid (public offering of shares). According to the relevant fact published this morning, the price offered in shares implies a premium of 22% with respect to the price of the Mexican subsidiary in recent days.
The entity today holds its ordinary shareholders meeting in Santander
The announcement of the OPA has been made a few hours before the bank holds its ordinary general meeting in Santander. According to the same relevant event if all the shareholders of the Mexican bank will accept the offer, Santander should issue 570 million shares representing 3.5% of the bank's capital. The bank's operation will improve Santander's capital ratios to 14.5%.