Santander plans bid for outstanding Brazil unit shares

Santander plans to launch a share swap offer to acquire the remaining shares in its Brazilian unit, Santander Brasil, at a 15% premium over the current closing price.

Santander ‌said on Thursday ​it intends to launch an offer to acquire the remaining shares ‌it does not already own in its Brazilian unit, through a share swap.

The Spanish bank, which owns some ‌90% of its Brazilian subsidiary, said in a statement ‌the offer "will be voluntary, does not seek the delisting of Santander Brasil and is not subject to a minimum acceptance condition." Santander ⁠is ​offering Santander ⁠Brasil's shareholders a 15% premium over Thursday's closing price in ⁠a transaction valued at up to 1.9 billion euros

The transaction ​is expected to "strengthen the group's long-term earnings growth and ⁠organic capital generation," while having a neutral impact on capital ratio, ⁠the ​Spanish bank added. If all minority shares are tendered, the Spanish parent will issue about 156 million ⁠new shares, equivalent to about 1.1% of its current share ⁠capital, it ⁠said.

($1 = 0.8678 euros)