Santander's Polish bank issues shares to buy smaller group unit

WARSAW, June 3 Tue Jun 3, 2014 6:14am EDT

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WARSAW, June 3 (Reuters) - Banco Santander's Polish unit, BZ WBK, plans to issue shares worth 2.16 billion zlotys ($710.1 million) to take control over the Spanish bank's smaller local lender, BZ WBK said on Tuesday.

BZ WBK, worth almost 35 billion zlotys on the Warsaw bourse , will issue almost 5.4 million shares at 400.53 zlotys each to buy 60 percent in Santander Consumer Bank from Santander Consumer Finance.

Spain's largest lender, which bought BZ WBK and propelled it to Poland's top three through mergers, wants to bind its Polish units together to improve efficiency and cut costs.

BZ WBK shareholder are to discuss the issue, which values Santander Consumer Bank at 3.6 billion zlotys, at a meeting called for June 30. ($1 = 3.0420 Polish Zlotys) (Reporting by Marcin Goclowski, editing by Louise Heavens)

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