Banco Santander today announced its intention to offer to acquire up to 25% of its Mexican subsidiary through an exchange offer, equivalent to €2,560 million euros*. Speaking at the bank’s Annual General Meeting, Ana Botín, Banco Santander executive chairman, said: We believe in Mexico, in the potential of its financial sector and in Santander Mexico which is one of the leading banks in the country today”.
 
According to the terms of the transaction, tendering shareholders of the Group’s subsidiary in Mexico will receive 0.337 new Banco Santander shares for each Santander Mexico share or 1.685 new Banco Santander ADSs for every Santander Mexico ADS, which implies a premium of 14% over yesterday’s closing price. The maximum investment that Banco Santander would make to carry out the transaction, which is expected to have a neutral impact on earnings per share and a slightly positive impact on capital, would be €2,560 million*, to be paid with new shares. 
 
^{[*] Estimated valuation based on total shares owned by minority shareholders of 1.7 billion valued at 28.40 Mexican pesos per share at close yesterday, with an exchange rate of 21.2826 Mexican pesos per euro, and a premium of 14% over yesterday’s closing Price.}
 

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