UPDATE 5-Santander seeks Brazil unit buyout, sees Europe recovery

martes 29 de abril de 2014 16:27 GYT
 

* Santander says has faith in Brazil long-term outlook

* CEO rules out strategy change with other listed units

* Sees offering of UK unit taking place in 'mid-term'

* Europe earnings rise as first-quarter profit up 8 pct (Adds details of banks advising on deal)

By Sarah White, Jesús Aguado and Guillermo Parra-Bernal

MADRID/SAO PAULO, April 29 (Reuters) - Banco Santander SA launched a 4.7 billion euro ($6.5 billion) offer on Tuesday for the 25 percent of its Brazilian unit it does not already own, giving investors a chance to gain exposure to a budding recovery of the euro zone's largest bank.

Under the proposed deal, minority investors in Banco Santander Brasil SA would receive up to 665 million shares of the Madrid-based lender in a voluntary swap at the equivalent of 15.31 reais a share. That represents a 20 percent premium to Santander Brasil's closing price on Monday.

Santander, which is emerging from Europe's worst economic crisis in decades while still facing a weak Brazilian economy, hopes the buyout will help cut costs, boost returns and lure clients to Santander Brasil. Investors are undervaluing the potential of Santander Brasil, executives said.

"It's a take-it-or-leave-it offer to gain exposure to Santander's better momentum in Europe as we all recognise that much heavy lifting has to be done in Brazil," said Mohammed Mourabet, who oversees $900 million in assets for Victoire Brasil Investimentos in São Paulo.   Continuación...