Vasai-Virar High Profile Model Call Girls๐9833754194-Nalasopara Satisfy Call ...
ย
Santander offers $6.5 billion to buy the rest of its brazil unit ny times.com - nytimes
1. 29/4/2014 Santander Offers $6.5 Billion to Buythe Rest of Its Brazil Unit - NYTimes.com - NYTimes.com
http://dealbook.nytimes.com/2014/04/29/santander-offers-6-5-billion-to-buy-the-rest-of-its-brazil-unit/?_php=true&_type=blogs&_r=0 1/3
Santander Offers $6.5 Billion to Buy the Rest
of Its Brazil Unit
By DAN HORCH
April 29, 2014, 1:05 pm
SรO PAULO, Brazil โ Banco Santander announced on Tuesday a
deal to acquire the 25 percent of its Brazilian unit, Santander Brasil,
that it does not already own for 4.69 billion euros, or $6.52 billion.
As part of the deal, Santander is offering shares in the parent
company in exchange for shares in the Brazilian unit.
The price offered for Santander Brasil is 15.31 reais, or $6.92, per
unit, a 20 percent premium over Mondayโs closing price.
If all of Santander Brasilโs shareholders accept the offer, Santander
would issue 665 million shares in the parent company, the equivalent of
5.8 percent of its current float. The new shares will trade on the Sรฃo
Paulo stock exchange as Brazilian depositary receipts. Owners of
American depositary receipts in Santander Brasil would receive A.D.R.s
in Santander Spain.
The offer is voluntary, so Santander Brasil shareholders can keep
their shares, which will continue to trade in Sรฃo Paulo. But Andre Riva
Gargiulo, senior banking analyst for Grupo Bursรกtil Mexicano in Brazil,
said shareholders had little choice but to accept the offer.
โEven though the shares will continue to trade, they will have very
little liquidity and will now be listed in a lower corporate governance
tier,โ he said.
2. 29/4/2014 Santander Offers $6.5 Billion to Buythe Rest of Its Brazil Unit - NYTimes.com - NYTimes.com
http://dealbook.nytimes.com/2014/04/29/santander-offers-6-5-billion-to-buy-the-rest-of-its-brazil-unit/?_php=true&_type=blogs&_r=0 2/3
Although Mr. Gargiulo termed the offer โunfriendly,โ he said the
price Santander Spain was offering was in line with his estimate for the
sharesโ potential upside.
Shares of Santander Brasil were up about 16.6 percent Tuesday in
Sรฃo Paulo to 14.91 reais, indicating market confidence that the deal will
close.
Santander held an I.P.O. of its Brazilian subsidiary in 2009, when
Brazilโs markets were booming. It raised $8.05 billion in the largest
I.P.O. in Brazilโs history.
Eduardo Nishio, financial sector analyst for the Sรฃo Paulo
investment bank Brasil Plural, noted that Santander Brasilโs share
performance since has been โbrutalโ for investors.
At the I.P.O., Santander Brasil listed its shares at 23.5 reais apiece.
Had investors at the time simply put those 23.5 reais in short-term
Brazilian government treasuries, they would now have 36 reais, or
nearly 2.4 times the current share price.
โIt is clearly a good deal for Santander Spain, which is swapping its
own shares, which have done relatively well in recent years, for shares
which have done very poorly,โ Mr. Nishio said
Mr. Nishio said Santander Brasilโs performance since its I.P.O. had
been โdisappointing,โ with growth and profits lower than its main
competitors, while its Spanish parent often used its Brazilian resources
to strengthen its own capital position.
In a research report Tuesday morning, J.P. Morgan called the offer
โreasonableโ because it was well above what the firm estimated to be
Santander Brasilโs fair value, 14 reais a share.
J.P. Morganโs analysts added that they did not expect Santander
Spain to make similar offers for its other publicly traded Latin
American subsidiaries, Santander Chile and Santander Mexico.
3. 29/4/2014 Santander Offers $6.5 Billion to Buythe Rest of Its Brazil Unit - NYTimes.com - NYTimes.com
http://dealbook.nytimes.com/2014/04/29/santander-offers-6-5-billion-to-buy-the-rest-of-its-brazil-unit/?_php=true&_type=blogs&_r=0 3/3
ยฉ 2014 The New York Times Company