The Spanish entity also sells 50% of its asset management business in Poland to Erste for 200 million euros
Banco Santander has agreed to sell approximately 49% of the capital of Santander Polska, its Polish subsidiary, to the Austrian group Erste Bank for 6.8 billion euros, as well as 50% of its asset management business in Poland (TFI) that Santander Polska does not control for about 200 million euros, bringing the total amount of the deal with Erste to around 7 billion euros.
As reported by the Spanish entity on Monday, the transaction is subject to the usual conditions in this type of operation, including the corresponding regulatory approvals.
The transaction, entirely in cash, will be executed at a price of 584 zlotys per share (136.5 euros), valuing the bank at 2.2 times its tangible book value per share at the end of the first quarter of 2025, excluding the announced dividend of 46.37 zlotys (10.84 euros) per share, and at 11 times the profit in 2024.
Santander has highlighted that this price also represents a premium of 7.5% over the closing market price of Santander Polska on May 2, excluding the dividend, and 14% over the six-month volume-weighted average price. Santander Polska shares will trade ex-dividend on May 12.
After the transaction, Santander will have approximately 13% of the capital of Santander Polska and intends to acquire the entirety of Santander Consumer Bank Polska before the closing by purchasing the 60% currently held by its Polish subsidiary.
NET GAIN OF 2 BILLION
The closure of these operations, expected around the end of 2025, will generate an approximate net gain of 2 billion euros for Santander, resulting in an increase of around 100 basis points in the CET1 capital ratio of the group, equivalent to about 6.4 billion euros, and positioning the pro forma CET1 capital ratio at around 14%.
Santander plans to distribute 50% of the capital released in this operation through a share buyback of approximately 3.2 billion euros. According to the entity, this will accelerate the achievement of the goal of up to 10 billion euros in share buybacks from the results of 2025 and 2026 and the expected excess capital.
«Therefore, the previously announced goal could be exceeded, given the attractiveness of buybacks at current valuations, subject to regulatory approval,» the bank emphasizes.
Santander expects the operation to have a positive impact on earnings per share from 2027/2028, thanks to the reinvestment of capital in a combination of organic growth, share buybacks, and potential complementary acquisitions that meet the group’s strategic and profitability criteria.
«The capital generated will allow Santander to have more strategic flexibility to invest in other markets where it already operates in Europe and America with the aim of accelerating growth, increasing revenues from network collaboration among the five global businesses, and maximizing benefits for customers and shareholders,» highlights the entity chaired by Ana Botín.
A few days ago, Santander confirmed that it was in talks with Erste for the sale of 49% of its subsidiary in Poland.
(((FURTHER EXPANSION WILL FOLLOW)))
FUENTE
