Santander reaps 740 million euros from IPO of US unit
Spanish bank sold four percent of Santander Consumer USA Price of the offer was fixed at 24 dollars
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.