Markets failing to assess real value of Santander Brasil, CEO says
SAO PAULO, April 29
SAO PAULO, April 29 (Reuters) - Market participants are failing to assess the real value of Banco Santander Brasil SA and of businesses in Brazil in general, Chief Executive Officer Jesús Zabalza said on Tuesday.
Zabalza told investors at an earnings conference call that the parent company Banco Santander SA's buyout offer for the 25 percent stake it does not own of Santander Brasil "reflects the great confidence the group has in the future of Brazil and its business in the country." The deal could be worth as much as 4.7 billion euros ($6.5 billion), Zabalza said, adding that he expects it to be concluded by October.
Spain's Santander is offering minority stakeholders in Santander Brasil a 20 percent premium on the Brazilian unit's stock, which has lost nearly half their value since it was sold at 23.5 reais ($10.5) in October 2009. They closed on Monday at 12.74 reais. (Reporting by Guillermo Parra-Bernal and Aluísio Alves; Editing by Nick Zieminski)