Banco Santander to Buy Back 50% Stake in its Asset-Management Unit
November 16 2016 - 1:19PM
Dow Jones News
By Jeannette Neumann and Simon Clark
MADRID -- Banco Santander SA has agreed to buy back the 50%
stake in its asset-management unit that it sold to two
private-equity firms in 2013.
Santander said the sale by Warburg Pincus LLC and General
Atlantic would allow the bank to have full control of the asset
manager's EUR170 billion of assets under management. Santander had
sold the stake to both firms 3 1/2 years ago in a transaction that
valued the unit at EUR2 billion.
Santander didn't disclose on Wednesday in a regulatory filing
how much it would pay Warburg Pincus and General Atlantic to take
full ownership of the asset manager.
Santander said it expects a negative impact of around 11 basis
points to its core Tier 1 capital ratio by the end of this year.
Analysts have said Santander's buyback makes sense as the company
steps up its focus on generating more fees.
The Wall Street Journal had reported that Santander was in talks
to buy back a 50% stake in its asset-management unit on Nov. 2.
Write to Jeannette Neumann at jeannette.neumann@wsj.com and
Simon Clark at simon.clark@wsj.com
(END) Dow Jones Newswires
November 16, 2016 13:04 ET (18:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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