Sale of Colombian unit to Chilean group Corpbanca

RNS Number : 3883E

Banco Santander S.A.

30 May 2012

 

MATERIAL FACT

In connection with the sale of Banco Santander Colombia and its other subsidiaries in that country announced on 6 December 2011, Santander Group reports that it has agreed with the buyer, the Chilean group Corpbanca, that the sale will be carried out in two phases.

The first phase, consisting in the sale of the 51% of the issued shares in Banco Santander Colombia S.A. and Santander Investment Trust Colombia S.A., has been completed today for a total price of 624 million US dollars (approximately 497 million euros).

It is expected that the second phase of the transaction, consisting in the sale of the rest of the Group's shares in the referred subsidiaries and of the other Group subsidiaries in Colombia, will be completed by 30 June 2012 once Corpbanca has completed the already started capital increase with which it intends to partially finance the transaction and the corresponding regulatory approvals for this second phase have been obtained.

The transaction as a whole generates a capital gain for the Santander Group of approximately 615 million euros, which has been recorded in the first half of 2012 as a consequence of the loss of control in the referred subsidiaries that derives from the closing of the first phase of the transaction. As announced on 7 February and 13 May, 2012, this capital gain will allow making provisions amounting to 900 million euros which will be used to partially cover the additional provisioning of real estate assets that must be satisfied by the end of 2012.

Boadilla del Monte (Madrid), 29 May 2012

 

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