Banco Santander said Thursday it made a capital gain of 740 million euros from the initial public offering of 21.6 percent of its Santander Consumer USA (SCUSA) auto-financing subsidiary.
The company fixed the price of the offer at 24 dollars per share, valuing the unit at 8.3 billion dollars and the bank’s stake at 5 billion. The offer was ten times oversubscribed.
After the transaction, Banco Santander will control 60.7 percent of SCUSA’s capital. The bank sold a 4-percent stake, while the remaining part was sold by Auto Finance Holdings Series, a company owned by Centerbridge Partners, Kohlberg Kravis Roberts & Co., Warburg Pincus and DFS Sponsor Investments.
Santander also said it intends to increase the equity of Santander Holdings USA, which groups Santander Bank and Santander Consumer USA, by up to 2 billion dollars to support its growth plans in the United States.