Banco Santander S.A. Information on Allfunds Bank (6866Y)
March 07 2017 - 2:00AM
UK Regulatory
TIDMBNC
RNS Number : 6866Y
Banco Santander S.A.
07 March 2017
MATERIAL FACT
Following the material fact dated 16 November 2016 (material
fact number 244828), Banco Santander, S.A. ("Santander")
communicates that Santander together with its partners(1) in
Allfunds Bank, S.A. ("Allfunds Bank") have reached an agreement for
the sale of 100% of Allfunds Bank to funds affiliated with Hellman
& Friedman, a leading private equity investor, and GIC,
Singapore's sovereign wealth fund.
The sale of Allfunds Bank takes place in the context of the
agreement reached by Santander on 16 November 2016 with Warburg
Pincus and General Atlantic to acquire their 50% stake in Santander
Asset Management.
Santander Group estimates that the proceeds it will obtain for
the sale of its stake of 25% in Allfunds Bank will be approximately
470 million euros, deriving a capital gain net of taxes of
approximately 300 million euros, and that in 2018 such sale,
together with the acquisition of the 50% of Santander Asset
Management that Santander does not own and that was announced on 16
November 2016, will have a positive impact on earnings per share
already included in the estimates that Santander Group mentioned in
the referred material fact announcement made on 16 November 2016,
and will generate a return on invested capital (RoIC) above 20%
(and above 25% in 2019). Santander Group also estimates that the
consumption of both transactions on its capital (core equity tier
1) by the end of 2017 will be approximately 11 basis points.
Allfunds Bank has 250 billion euros of assets under
administration and is the leading B2B (business-to-business) open
architecture mutual fund platform with presence in 38
countries.
The transaction is subject to obtaining all required regulatory
approvals.
Boadilla del Monte (Madrid), 7 March 2017
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Note 1: The other shareholders in Allfunds Bank are Santander
Group's partners in Santander Asset Management, Warburg Pincus and
General Atlantic, with a combined 25% and Eurizon Capital SGR, a
subsidiary of Intesa Sanpaolo, with 50%.
This information is provided by RNS
The company news service from the London Stock Exchange
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