Santander acquisition Popular

Santander results: Attributable profit grows 18%

Banco Santander’s Capital Raising Operation Will Have A Higher Discount Than Market Expectations

Banco Santander will raise 7.072,4 billion euros as expected via a rights issue in order to”provide sufficient coverage for the acquisition of 100% of Banco Popular’s capital.” The operation will consist in issuing 1.458,2 million new shares at 4,85 euros/share, which includes the nominal value of 0,5 euros plus an issue premium of 4,35 euros/share. This capital hike implies a discount of 17.75% with respect to theoretical price excluding the subscription right.