Santander seeks to sell 5% of its Polish subsidiary for nearly 600 million euros

Santander will retain a stake of approximately 62% in Santander Bank Polska.

Santander looking to sell a 5% share in its Polish subsidiary Santander Bank Poland in order to collect around 600 million euros and redistribute capital to make better use of it within the bank, as the entity indicated in a statement sent to the Warsaw Stock Exchange.

Concretely, the bank launched the sale of 5.12 million shareswhich represents about 5% of the bank's capital. If you manage to sell the entire package of shares, Santander will retain a majority stake of 62.39% in the Polish branch.

According to the stock market price of Santander Polska on Tuesday, which was around PLN 502.8, the share placement would raise around PLN 2,574.3 million (EUR 601.3 million).

The bank expects the proceeds to be used for growth or repurchase of additional sharesas stated in the terms of the transaction. Santander stressed that Poland remained a “key” market and that it continued to aspire to to be in the “top 3” of the country’s banks in capital remuneration and Net Promoter Score.

The Spanish group aims pay 50% of its profits to shareholders through dividends and share buybacks. Since 2021, Santander has repurchased around 11% of its shares.

Citi Group, Goldman Sachs and Santander investment bank are arranging the share sale, according to the document sent to the Polish stock exchange.



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