Brief: Santander To Sell 49% Of Santander Polska To Erste Group Bank For 6.8 Bln Euros

Erste Bank AG

05/05/2025 07:47

May 5 (Reuters) - Banco Santander SA SAN.MC:

SANTANDER ANNOUNCES THE SALE OF 49% OF SANTANDER POLSKA TO ERSTE GROUP BANK, AND AGREES STRATEGIC COOPERATION ACROSS CIB AND PAYMENTS

TOTAL CASH CONSIDERATION OF €7 BILLION

ALL-CASH TRANSACTION AT 584 ZLOTYS PER SHARE VALUES BANK AT 2.2 TIMES FIRST QUARTER 2025 TANGIBLE BOOK VALUE PER SHARE

SANTANDER AND ERSTE ARE ALSO ANNOUNCING A STRATEGIC COOPERATION TO LEVERAGE EACH FIRM'S STRENGTHS AND FOOTPRINT IN CORPORATE & INVESTMENT BANKING (CIB)

FOLLOWING TRANSACTION, SANTANDER WILL OWN C.13% OF SANTANDER POLSKA AND INTENDS TO TAKE FULL OWNERSHIP OF SANTANDER CONSUMER BANK POLSKA

SANTANDER INTENDS TO DISTRIBUTE 50% OF CAPITAL RELEASED UPON COMPLETION TO ACCELERATE ITS PLANNED SHARE BUYBACKS, EQUIVALENT TO APPROXIMATELY €3.2 BILLION

TRANSACTION EXCLUDES DECLARED DIVIDEND OF 46.37 ZLOTYS/SHARE, AND REPRESENTS PREMIUM OF 7.5% VERSUS SANTANDER POLSKA’S CLOSING PRICE ON 2 MAY, EXCLUDING DIVIDEND

POTENTIAL TO EXCEED PREVIOUSLY ANNOUNCED SHARE BUYBACK TARGET, SUBJECT TO REGULATORY APPROVAL

TO SELL TO ERSTE APPROXIMATELY 49% OF SANTANDER POLSKA'S SHARE CAPITAL FOR €6.8 BILLION

TO ALSO SELL 50% OF POLISH ASSET MANAGEMENT BUSINESS (TFI) THAT SANTANDER POLSKA DOES NOT OWN FOR €0.2 BILLION

TO TAKE FULL OWNERSHIP OF SANTANDER CONSUMER BANK POLSKA BEFORE CLOSING BY ACQUIRING 60% STAKE OWNED BY SANTANDER POLSKA

UPON COMPLETION, EXPECTED AROUND END OF 2025, TRANSACTIONS ARE EXPECTED TO RESULT IN A NET CAPITAL GAIN OF C. €2 BILLION FOR SANTANDER

UPON COMPLETION OF TRANSACTION, GROUP WILL RUN TEMPORARILY WITH A CET1 RATIO ABOVE TARGET OPERATING RANGE OF 12-13%

TRANSACTION EXPECTED TO BE EARNINGS PER SHARE ACCRETIVE BY 2027/2028 FROM REDEPLOYMENT OF CAPITAL THROUGH COMBINATION OF ORGANIC GROWTH, SHARE BUYBACKS AND ANY BOLT-ON TRANSACTIONS

Source text: ID:nCNMVPvVPF

Further company coverage: SAN.MC

 (Gdansk Newsroom)

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