27th Jul 2007 07:43
Banco Santander Central Hispano SA27 July 2007 --------------------------------------------------------------------------------Press release Santander sells Latin American pension management companies (AFPs) to ING • The sale is valued at EUR 950 million, with capital gains of EUR 600 million approximately. Madrid, July 27, 2007- Santander has agreed to sell its Latin American mandatorypension fund management companies (AFPs by their Spanish acronym) to ING Groupfor US$ 1,300 million (EUR 950 million), generating a capital gain of EUR 600million approximately. The sale includes AFPs in Mexico (Afore Santander), Chile(AFP Bansander), Colombia (AFP y Cesantia Santander) and Uruguay (AfinidadAFAP). The sale is subject to the relevant approvals by the various regulators. Santander and ING are also in advanced negotiations for the sale of pensionmanager Origenes AFJP and the life annuities company Origenes Retiro, both ofArgentina, in which Santander is a shareholder. Following this sale, Santander will concentrate its resources on the financialdistribution business carried out through its network of more than 4,300branches in Latin America and other banking distribution channels, includingmore than 15,000 ATMs and 9,000 telephone service attendants. Santander continues to be committed to Latin America through its Plan America2010, its strategic plan for the region for the next three years (2007-2009)which aims to enhance bankarisation among Latin America's middle classes andsupport the development projects most countries are carrying out ininfrastructure, strategic sectors, capital markets and international expansionof large companies. Bankarisation will be boosted through Project America 2010, which foreseesinvestment of US$2 billion over three years in opening 1,000 branches,installing 5,000 ATMs and expanding the bank's technological and operatingcapabilities. This strategic plan, which will create 6,000 new direct jobs, aimsto attract new customers and build loyalty within the customer base. To achievethis, Santander will broaden its offering and strengthen services such as directpayroll deposits, credit and debit cards, consumer loans and insurance. Theseproducts, together with mortgage loans, will be crucial in the further"bankarisation" of the region. Together with this broad retail banking plan, Santander's goal is to be the bestwholesale bank in the region, becoming the premier bank for companies andcorporates in all countries where we are present, mainly Brazil, Mexico andChile. Wholesale Banking will be involved in existing projects in variouscountries to develop infrastructure and strategic sectors and will also work toenhance capital market activities and internationalisation of large companiesfrom the region. Santander Global Banking and Markets advised Santander in this deal. Santander (SAN.MC, STD.N) is the largest bank in the euro zone by marketcapitalization and seventh in the world by profit. Founded in 1857, Santanderhas EUR 833,873 million in assets and EUR 1,000,996 million in managed funds, 67million customers, 10,852 branches and a presence in 40 countries. It is thelargest financial group in Spain and Latin America, and is the sixth largestbank in the United Kingdom, through its Abbey subsidiary, and is the thirdlargest banking group in Portugal. Through Santander Consumer Finance, it alsooperates a leading consumer finance franchise in Germany, Italy, Spain and nineother European countries. In 2006, Santander registered €7,596 million in netattributable profits, an increase of 22% from the previous year. In Latin America, Santander manages over US$250 billion in business volumes(loans, deposits, mutual funds, pension funds and managed funds) through 4,370offices. In 2006, Santander reported $2.866 million in net attributable incomein Latin America, 29% higher than the prior year. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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