Banco Santander S.A. Information on Santander Asset Management (3767P)
November 16 2016 - 10:50AM
UK Regulatory
TIDMBNC
RNS Number : 3767P
Banco Santander S.A.
16 November 2016
MATERIAL FACT
Banco Santander, S.A. ("Santander") communicates that it has
reached an agreement with Warburg Pincus ("WP") and General
Atlantic ("GA") under which Santander will acquire their 50% stake
in Santander Asset Management, bringing this unit back to 100%
ownership of Santander Group.
As part of the transaction Santander, WP and GA have agreed to
work towards the disposal of their participation in Allfunds Bank,
S.A. ("Allfunds Bank") through a trade sale or an initial public
offering (IPO).
Santander Asset Management has EUR170 bn of assets under
management and has a leading position in 11 countries in Europe and
Latin America. The asset management business contributes EUR1.1 bn
to the annual fee income of Santander Group (proforma consolidating
100% of SAM), which aims to strengthen this business by reinforcing
the range of products.
Santander Group estimates that in 2018 the transaction will be
accretive in earnings per share (>1%) and the return on invested
capital (RoIC) will be above 20% (and above 25% in 2019). Santander
Group also estimates that the negative impact on its capital (core
equity tier 1) by the end of 2017 will be approximately 11 basis
points. All estimates are net of the effect resulting from the
foreseeable sale of the 25.25% indirect stake of the Santander
Group in Allfunds Bank.
The transaction is subject to obtaining all required regulatory
approvals.
Boadilla del Monte (Madrid), 16 November 2016
This information is provided by RNS
The company news service from the London Stock Exchange
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