SPAIN’S TOP lender Santander moved to gain full control of Polish target Bank Zachodni WBK yesterday, offering to buy minority investors out for a 4.5 per cent premium, which values the bank at $5.7 billion.
Santander beat European rivals seeking a slice of Polish growth with a deal in September to buy 70.4 per cent of the country’s fifth largest bank by assets from AIB, part of a €2.9 billion transaction.
It is still awaiting Polish regulatory approval.
Santander has been expected to make a bid for the remaining shares in BZ WBK as buyers are required to do so by Polish law when their stake in a company surpasses 66 per cent.
The outstanding questions were when Santander would comply with this rule and what price it would offer BZ WBK’s investors.
Santander answered both when it said it would offer 226.89 zlotys per share in a tender scheduled to take place between February 24th and March 25th. That values the remaining shares in BZ WBK at around $1.7 billion.
“The price is in line with expectations, but investors are happy that there are now dates for the tender,” Michal Sobolewski, an analyst at IDM SA brokerage in Warsaw, said.
In a statement, AIB said: “Once the tender offer is open for acceptance and all conditions to the sale agreement have been satisfied, AIB will tender its 51,413,790 shares in BZWBK representing 70.36 per cent in the share capital of BZWBK.
“There is no change to the sales proceeds or capital effect expected and announced by AIB on September 10th, 2010.” – (Reuters)
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