Santander starts offering to buy shares of its subsidiary in Mexico
According to information sent to the Mexican Stock Exchange (BMV), this number of shares, which has quotation key "BSMX" represents 24.95 percent of the outstanding share capital of Santander Mexico.
In this way, the period of the offer that was initially announced from August 19 to September 13 was brought forward and will now end on September 6.
Simultaneously with the offer in Mexico, Santander España is conducting a public takeover and exchange offer in the United States for Santander Mexico shareholders who are residents or located in that country and all holders of American Depositary Shares (ADSs) in Santander Mexico, regardless of their location.
"The offer will remain in effect for a period of 22 business days, counted from August 8, 2019, and will end on September 6, 2019 at 12:00 noon in Mexico City, unless the period of the offer is extended, in terms of the Applicable Law," says the document sent to the trading center.
Last April, the Spanish group announced its intention to buy the shares of its subsidiary in Mexico as part of Grupo Santander's strategy to increase its exposure to growing markets.
"Mexico presents an opportunity for growth due to the low banking penetration that the Group wants to take advantage of so it is willing to increase its stake in its Mexican subsidiary, which enjoys a leading position in the Mexican market."
This operation does not imply any change in strategy or business for the group or Santander Mexico.
For those who accept the offer, the acquisition will be made through an exchange of shares of Banco Santander (SAN) at a ratio of 0.337 newly issued shares of Banco Santander for each share of Santander Mexico and 1,685 American Depositary Shares (ADS) of Banco Santander for each ADS of Santander Mexico.