Santander collects 7 million euros from Poland Sale

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Santander has reached an agreement of 7 million euros to sell participation in his business in Poland, as he cuts his retail banking in the country, with the plans to devote part of the income to sharing rewards.

The Spanish bank movement, announced on Monday, is in the midst of questions about whether its extensive global presence, in which Poland has described as one of its ten “basic markets”, it still makes sense.

Santaner He said he would take € 6.8 million selling a 49 percent participation in Santander Bank Polka, a retail business business, at Erste Group based in Vienna.

The Spanish group said that funds meant that it could “potentially” exceed their existing goal of completing 10 million euros of rewards at the end of 2026.

Although Santander will retain a 13 percent participation in Santander Polka, the agreement reduces its exposure to a country where its business has relatively few connections to its most important markets, including Spain, the United Kingdom, the United States and Brazil.

The purchase gives control to Erste on the third largest bank Poland And he delivers his CEO Peter Bosek, the largest piece in his plans to create a group of top -notch retail banking in Central and Eastern Europe.

Erste is also acquiring 50 percent participation in a Santander Polish asset management business for 200 million euros, with the two offers subject to regulatory approval.

Ana Botín, Executive President of Santander, said that the bank was planning to devote half of the income (approximately 3.2 million euros) to sharing rewards that it has already announced.

“This transaction is another key step in our strategic approach to the value creation of shareholders,” Botín said. “For Santander, we crystallize value in multiple multiple.”

Santander said that the agreed price equated to 2.2 times the tangible accounting value of his Poland business, a considerably higher assessment than that of the Santander General group, the market capitalization of 97 million euros is approximately 1.1 times the accounting value.

His Poland business has a 20 percent equity performance, compared to 16 percent of the Santander group worldwide.

Santander will retain a presence in Poland in consumer loans such as car financing.

Santander Polka appears on the Polish stock market with a free float around 38 percent. Their actions fell 4.5 percent to the morning negotiation after the announcement, while Erste’s actions increased by 6 percent. Santander’s shares increased by 0.2 percent.

Erste is already operating in half a dozen central countries and Eastern Europe, but its activities in Poland, which is, with much, the largest market in the region, have so far been limited to having an agent.

The banking sector of Poland is run by two state -controlled banks, but more than two fifths of Polish bank assets are in the hands of foreign banks operating in Poland, including the Dutch Ing and Commerzbank group in Germany, which is owned by MBANK.

Erste said that the agreement would “complete its growth profile” in the region and increase its customer numbers in the countries of Central and Eastern Europe to 23 million of 17 million people. To help finance the agreement, ERSTE will cancel a planned action repurchase of € 700 million announced in February.

This article has been updated to correct the profitability of the equity of Poland of Santander.