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Banco Santander Offers To Buy Remaining 8.3% Stake In Its Mexican Unit For EUR 550 Mln

Banco Santander S.A. (BNC.L,BSBR,SAN) said Friday that it plans to make a cash offer to buy a remaining 8.3% stake in its Mexican unit for a total consideration of 550 million euros.

Banco Santander currently owns 91.7% of Santander México.

The expected price for those shareholders who accept the offer would be 24 Mexican pesos for every share of Santander México. The offer price represents a 24.3% premium on the closing market price on 25 March 2021.

The transaction is expected to have a return on invested capital (ROIC) of 14% and improve Banco Santander's earnings per share by 0.8% in 2023.

The transaction is expected to be completed in the second or third quarter of 2021.

Santander said it will report Friday at its annual general meeting that the business has remained strong in the first quarter of 2021, with revenues in line with the fourth quarter of 2020. As a result, the bank now expects to achieve an underlying return on tangible equity (RoTE) of 10% by the end of 2021.

The bank will also report that the board's intention is to restore a shareholder remuneration policy of 40-50% of the group's underlying profit.

The group board has also decided to appoint Andreas Dombret as a member of the bank's international advisory board.

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