Boston, MA 05/06/2014 (wallstreetpr) – Banco Santander, S.A. (ADR) (NYSE:SAN) has authorised and nominated banks that would lead manage the issue of its maiden Additional Tier 1 in American dollars. Morgan Stanley, Deutsche Bank, Credit Agricole, Goldman Sachs and itself have been mandated for this purpose of launching the five year bond which would be of non call nature. If the bank or equity tier 1 ratio dips below 5.125%, the bonds will automatically convert to equity.
Business strategy
Banco Santander, S.A. (ADR) (NYSE:SAN) is planning to make a bid acquire entire shares of Banco Santander Brasil that are not held by Grupo Santander already. The shares would represent nearly one fourth of Santander Brasil share capital. Banco Santander will offer a 20% premium on the last closing market price. The deal is likely to be closed by October this year. Santander will acquire all the shares held by shareholders who choose to accept the offer. Such shareholders would receive 0.70 freshly issued shares of Banco Santander for every unit or American Depositary Receipt (ADR) of Santander Brasil either through ADRs or BDRs.
The company’s Brazilian subsidiary is all set to acquire GetNet Tecnologia, Brazilian card payment processor for nearly $483.38 million. GetNet would be owned by the company’s own local card processing unit post acquisition which will give the company 88.5% indirect stake in GetNet. GetNet presently controls almost 6% of Brazil’s $300 billion card payment processing industry.
Gamesa Corporacion Tecnologica SA has entered into an agreement with Banco Santander, S.A. (ADR) (NYSE:SAN)’s Grupo Financiero Santander Mexico (Santander) to form a joint venture that would work for jointly developing a series of wind farms in Mexico. The proposed capacity of the same is up to 500 MW. Development of projects would be as per the framework of Open Season II.
Other developments
Financial Conduct Authority (FCA) a British financial watchdog fined Banco Santander, S.A. (ADR) (NYSE:SAN)’s UK arm an amount of $20.5 million for failing in its financial advice offerings a couple of years ago. On account of misappropriate advice given to clients, customers have suffered monetary losses. FCA wants Santander UK to redress the affected clients.
