Following this announcement, the all-cash transaction at 584 zlotys per share values the bank at 2.2 times first quarter 2025 tangible book value per share, a process that excluded the declared dividend of 46.37 zlotys per share.
In addition to the acquisition, Santander and Erste also announced a strategic cooperation in order to leverage each firm’s benefits and footprint in Corporate & Investment Banking (CIB), with the overall aim to enable Erste to gain access to Santander’s worldwide payments platforms.
According to the official press release, the transaction will give Santander the possibility to own 13% of Santander Polska, with the intention to take full ownership of Santander Consumer Bank Polska. At the same time, Santander is expected to distribute 50% of the capital release upon completion in order to accelerate its planned share buybacks, equivalent to approximately EUR 3.2 billion. This will take place with the potential to exceed the previously announced share buyback target, subject to regulatory approval.
The capital released will provide Santander with more flexibility to invest in other markets where the bank already operates, aiming to accelerate growth, increase network revenues, as well as maximise client and shareholder benefits.
In CIB, both Santander and Erste are set to leverage each other’s regional strengths in order to offer local solutions and market insights for their respective corporate and institutional customers through the use of a referral model. This model is set to facilitate improved client interactions and service offerings. In addition, Santander will also connect Erste's clients with its global product platforms in the UK, Europe, and the Americas, while the banks will work together as preferred partners with the aim of building strong, mutually beneficial relationships that maximise joint business opportunities.
With payments, the financial institutions are set to explore opportunities for Erste to leverage Santander’s payment capabilities and infrastructure. Furthermore, Santander’s strategy will remain focused on generating sustainable value development for its clients and shareholders, as well as deploying shared platforms across each of its five global businesses.
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