On October 4th, Santander will issue convertible bonds for 7.000 billion euros.
The consortium formed by Santander, Royal Bank of Scotland (RBS) and Fortis, vying to buy ABN Amro, reminded everyone today that they had reserved the right to buy the Dutch bank without achieving the minimum acceptance of 80 percent that they set as a condition in their formal offer.
In a statement sent today to the National Securities Market Commission (CNMV), the banks reported that they reserve the right to waive the minimum acceptance condition if they do not obtain that support to comply with the requirements imposed by the US regulator (SEC).
Next Friday, October 5, marks the end of the period for ABN Amro shareholders to decide whether to accept its offer, valued at 37,8 euros per ABN share or 72.200 billion euros for the entire Dutch group.
Santander, the British RBS and the Belgian-Dutch Fortis are competing against the devalued offer from the British Barclays, payable mostly through a share swap and valued at 31,39 euros per ABN share or 59.900 billion euros in total.
Furthermore, Santander will issue convertible bonds for 7.000 billion euros on October 4th to finance the purchase of assets from the Dutch entity. These bonds will have an interest rate of 7,50% APR for the first year and the 3-month Euribor plus a spread of 2,75% for the remaining four years.
Furthermore, as approved at an Extraordinary General Meeting last summer, the bank also plans to issue shares equivalent to about 4.000 billion to finance the purchase, although the positive market reception of the bond issue announcement has led the bank to believe that the planned capital increase, which is expected to take place before the end of the year, could be reduced.
On the other hand, the sale of Banco Santander's properties in Spain, valued at around 4.000 billion euros, which it will then rent out to remain in them, could be finalized by mid-October after the entity assesses the various offers received to acquire them.
The capital gains from this operation, some 1.400 billion euros, will also be used to pay the 19.900 billion euros that the acquisition of the part of ABN Amro for which it has bid, mainly the Italian Antonveneta and the Brazilian Banco Real, will cost.
In total, if the operation is successful, Santander would have to pay around 19.900 billion euros, Royal Bank of Scotland 27.200 billion euros and Fortis 24.000 billion euros.
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