The Mexican stock market did not recognize the value of Santander Mexico, so the share is very cheap, so the parent company in Spain decided to delist the bank from the Mexican Stock Exchange.
Santander Spain, took 25% of the capital of its Mexican subsidiary to the BMV on September 29, 2012. In more than nine years, the price of the company’s shares registered more setbacks than advances. It was not profitable for investors to bet on the Santander Mexico project. Since 2012 they have dropped 30.14 percent.
“The shares are very cheap and Santander saw a good horizon for the future, people do not believe it and that was reflected in the price of the shares. Santander Spain believes it and that is why we are investing in the securities ”, highlighted Héctor Grisi, general director of the bank.
At a year-end meeting, the manager stressed that Santander is in the country in the long term, it does not mean that it is leaving, it will continue to invest. “It is simply a vision of what the market sees in the bank’s price and what we think it should be,” he added.
Finish your offer
Yesterday concluded the Public Offer for the Acquisition of shares launched on November 3 by Santander Spain to acquire the securities of its Mexican subsidiary.
According to the financial institution, its shareholding went from 91.6 to 96.2%, although its objective was to acquire 100% of the outstanding capital stock of its Mexican subsidiary.
The offer resulted in the purchase of just over 300 million shares that were paid at 26.5 pesos per share, including American Depositary Shares (ADS), for which it offered $ 6.2486.
So for the capital stock obtained from Santander Mexico, the institution will pay on December 10 a total of 5,174 million pesos for the shares of Mexico and 138.5 million dollars for the ADS, which would be a total outlay of 8,074 million pesos. (385.5 million dollars).
The announcement to the market did not specify what will happen to the remaining 3.8% of Santander México shares that are still in circulation. However, Héctor Grisi said that he will not withdraw from the BMV.
This is the second operation carried out by Banco Santander to buy all the shares of its subsidiary in light of positive performance expectations.
It was last November 3 when the financial institution of Spanish origin launched a new purchase offer for 8.27% of its Mexican subsidiary, to have full control. For this, it improved the conditions, by offering 10.41% more on the price of 24 pesos per share previously announced.
Reference-www.eleconomista.com.mx