Spain’s biggest bank Banco Santander SA intends to scoop up $7.1 billion in cash by selling off some of the shares in its Brazilian operations. They intend to dump 520 million shares at around 25 Brazilian reais each; this will be around 16% of their Brazilian holdings.
Banco Santander says that this is a good price for them and a strong indication of how popular their shares are in South America. Two and a half billion dollars will be ploughed back into Brazil with the opening of an adventurous 400 retail bank branches.
This in theory would make them the country’s number one money lender, more of this cash will make its way to Mexico, the UK and home to Spain in order to see the bank though the current financial troubles.
This transaction will be the biggest ever completed in Brazil where stock market prices are up over 60% this year making it an optimum time for the bank to have a sale.