Santander Sells Stake in Polish Subsidiary
Spanish banking giant, Santander, has recently sold a 3.5% stake in its Polish subsidiary, Santander Bank Polska, through an accelerated bookbuilding process. This significant transaction is estimated to be valued at up to $473 million, as reported by Reuters. This move follows a series of strategic decisions and transactions by the Spanish lender in recent months.
Previous Stake Sale
Earlier this year, in May, Santander agreed to sell a 49% stake in Santander Bank Polska to Erste Group Bank, a significant financial services provider in Eastern Europe. This transaction was valued at up to €6.8bn (approximately $7.90bn). The sale to Erste Group Bank reduced Santander’s ownership in the Polish unit to around 13%.
Recent Placement of Shares
As part of the recent stake sale, Santander placed 3.58 million ordinary shares of its Polish unit, which represented about 3.5% of Santander Bank Polska’s share capital. The shares were priced at 482 zlotys ($132.33) per share. This placement, combined with the previous divestment to Erste Group, leaves the Spanish lender with a 9.7% stake in its Polish subsidiary.
Strategic Cooperation with Erste Group Bank
Alongside their stake sale agreement, Santander and Erste Group Bank announced a strategic cooperation to leverage each other’s strengths and experience in corporate and investment banking. As part of this partnership, Erste gained access to Santander’s global payments platforms. This strategic move aims to enhance both banks’ capabilities and extend their reach.
Digital Transformation
In line with its digital transformation strategy, Santander Bank also sold seven of its branches in Pennsylvania, USA, to Community Financial System’s subsidiary, Community Bank. This transformation aims to position Santander as a digital-first bank.
Merging of Santander Consumer Finance (SCF) with Openbank
In October, Santander announced the merger of its Santander Consumer Finance (SCF) with Openbank to create a single legal entity operating under the Openbank brand. Openbank and SCF are part of Santander’s Digital Consumer Bank (DCB) global business. The merger is designed to streamline the company’s consumer finance operations in Europe.
These strategic moves by Santander reflect the bank’s commitment to adapt to changing market dynamics and customer preferences, with a specific focus on digital transformation.
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