24th Jan 2006 07:00
Banco Santander Central Hispano SA23 January 2006 OTHER COMMUNICATIONS Grupo Santander announces that its affiliate in Puerto Rico Santander BanCorpand Wells Fargo & Company reached today a definitive agreement by whichSantander will acquire the assets and business operations in Puerto Rico ofIsland Finance from Wells Fargo. As of Dec. 31, 2005, Island Finance hadapproximately $627 million in loan receivables in Puerto Rico. The transaction consists in the acquisition by Santander of the business - butnot of the debt and the rest of liabilities - of Island Finance, paying for it apremium of USD 137 million, which amount corresponds to the goodwill created bythe transaction. The closing of the sale, expected to occur during the first quarter of 2006, issubject to customary closing conditions including required regulatory approvalsand the absence of material adverse changes in the business or assets of IslandFinance-Puerto Rico prior to closing. Island Finance provides consumer loans and real estate-secured loans withproperty in Puerto Rico to approximately 205,000 customers through its 70 storesin Puerto Rico, as well as sales finance contracts through retail merchants.Island Finance is part of Wells Fargo Financial, the consumer finance subsidiaryof Wells Fargo & Company. This transaction will combine the strength of the No. 2 market share depositoryinstitution (excluding brokered deposits) with the No. 2 market share consumerfinance lender in Puerto Rico. Santander BanCorp expects the transaction to beimmediately accretive to earnings per share without considering revenuesynergies. The transaction will be solely financed with local resources inPuerto Rico. Boadilla del Monte (Madrid), January 23, 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Banco Santander