MADRID (AP) — Spain's Banco Santander SA is offering 4.7 billion euros ($6.5 billion) in shares to buy out the remaining 25 percent of its Brazilian subsidiary Banco Santander Brasil from minority shareholders.
Santander, the largest bank by market value in the 18-country eurozone, said in a statement Tuesday that it will issue approximately 665 million shares, representing 5.8 percent of the bank's total. It said the offer represents a 20 percent premium over the subsidiary's last closing market price.
The operation is expected to be completed by October. Santander said the offer demonstrated its confidence in the Brazilian entity. Santander said the subsidiary would continue to trade in Sao Paulo and New York.