Santander to Sell Stake in U.S. Auto Financing Group
>> Friday, October 21, 2011
Spain’s Grupo Santander, the eurozone’s largest bank by market capitalization, announced a $1.15 billion deal on Friday to sell a 35 percent stake in its automotive financing unit in the United States to a group of private equity investors, as it looks to shore up its balance sheet.
Under the terms of the agreement, Kohlberg Kravis Roberts, Centerbridge Partners, and Warburg Pincus will invest a combined $1 billion for a 25 percent share in Santander Consumer USA. Dundon DFS will pay $150 million for a 10 percent stake in Santander Consumer USA.
“Following the transaction, Santander will realize a capital gain of approximately $1 billion,” the Madrid-based bank said in a statement. “The capital gain will be fully allocated to reinforce the Group’s balance sheet.”
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Under the terms of the agreement, Kohlberg Kravis Roberts, Centerbridge Partners, and Warburg Pincus will invest a combined $1 billion for a 25 percent share in Santander Consumer USA. Dundon DFS will pay $150 million for a 10 percent stake in Santander Consumer USA.
“Following the transaction, Santander will realize a capital gain of approximately $1 billion,” the Madrid-based bank said in a statement. “The capital gain will be fully allocated to reinforce the Group’s balance sheet.”
