Banco Santander: shares' fall limited after capital increase
(CercleFinance.com) - Shares in Banco Santander have only dropped modestly on Tuesday, with investors digesting the terms of the capital increase announced by the Spanish bank yesterday.
The Madrid-based lender said late on Monday that it has launched a rights issue to raise a total of approximately 7.1 billion euros to support the acquisition of Banco Popular, as announced last month.
In all, Santander will issue 1,458 million new shares.
Shareholders will be able to subscribe 1 new share for every 10 shares they hold for a price of 4.85 euros per share, which represents a discount of 17.75% compared to yesterday's closing price.
"The discount is higher than our estimates, which were ranging between 7% and 10%," analysts at Bankinter commented this morning, maintaining their "sell" rating on the stock.
The subscription period will begin on 6 July and will close on 28 July. The new shares are set to begin trading on 31 July.
The shares are currently down 0.2% at 5.99 euros in Madrid.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The Madrid-based lender said late on Monday that it has launched a rights issue to raise a total of approximately 7.1 billion euros to support the acquisition of Banco Popular, as announced last month.
In all, Santander will issue 1,458 million new shares.
Shareholders will be able to subscribe 1 new share for every 10 shares they hold for a price of 4.85 euros per share, which represents a discount of 17.75% compared to yesterday's closing price.
"The discount is higher than our estimates, which were ranging between 7% and 10%," analysts at Bankinter commented this morning, maintaining their "sell" rating on the stock.
The subscription period will begin on 6 July and will close on 28 July. The new shares are set to begin trading on 31 July.
The shares are currently down 0.2% at 5.99 euros in Madrid.
Copyright (c) 2017 CercleFinance.com. All rights reserved.