31 October 2014

Brazilian repurchase results 13.65%

Communicate


Banco Santander, S.A. (“Banco Santander”) informs of the termination of the
acceptance period of the exchange offer made for the shares of Banco Santander
(Brasil) S.A. (“Santander Brasil”) that are not held by Grupo Santander, which was
formally launched on September 18, 2014 (the “Offer”). Securities representing 13.65% 
of Santander Brasil’s share capital have been tendered in the Offer. Therefore, Grupo
Santander’s shareholding in Santander Brasil will increase to 88.30% of its share capital.
To satisfy the exchange Banco Santander will issue 370,937,066 shares, which
represent approximately 3.09% of Banco Santander’s share capital as of this date,
pursuant to the resolution passed by the extraordinary general shareholders’ meeting
held on September 15, 2014.
The percentage of shares tendered is below the threshold provided in the documentation
relating to the Offer published in Brazil and in the United States for the holders of
securities of Santander Brasil who have not tendered in the Offer to have the right to sell
them to Banco Santander during a 3-month subsequent offering period at the same
exchange ratio. Hence, such right shall not exist.
Boadilla del Monte (Madrid), October 31, 2014

Only 56% of Santander Brasil exchanged their shares. They took the short term 20% premium. Fair enough for the 44%, who like Santander group prefer long term gains.


For the fun coverage in Anglo-Saxon press

  • reuters: full of bad understandings (value, 3.1%, ..., at the basis the value does not consider the ADR, and the 3.1% are the additional SAN shares)
  • reuters: author could not resist: Brazil is faltering
  • Bloomberg: Not bad except at the end: The +7% in net earnings and 3bpp in capital is in case all non controlled shares were exchanged. Roughly 50% were exchanged, so half the effects.

2 comments:

  1. Hello

    Just found your website and wanted to say thank you for all the information you are providing here.

    Please keep up the good work it is much appreciated by me!

    a fellow SAN shareholder.

    ReplyDelete