Banco Santander SA said Friday that it intends to make a cash offer to buy the remaining shares of its Mexican subsidiary that it does not already have for full consideration of around 550 million euros ($ 647 million).
The Spanish bank said the offer would target about 8.3% of the share capital of its Mexican subsidiary, with the deal expected to be completed in the second or third quarter.
Santander said the agreement would strengthen its growth profile and its ability to generate capital, improving earnings per share by 0.8% in 2023.
The business is also expected to receive a return on investment capital of about 14%, and the group’s CET1 ratio decreased by about eight basis points, he said.
Santander also confirmed that business has remained strong in the first quarter, with revenue in line with revenue for the fourth quarter of 2020.
The bank said it expects a base return on probable equity of about 10% by the end of 2021.
Write to Mauro Orru at [email protected]; @ MauroOrru94