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Santander Consumer USA successfully completes its initial public offering, valuing the company at USD 8.3 billion

January 27, 2014

ENP Newswire - 27 January 2014 Release date- 24012014 - Santander Consumer USA (SCUSA), Santander's US auto finance subsidiary, has successfully completed an initial public offering of 21.6% of its capital. The company fixed the price of the offer last night at USD 24 per share, valuing Santander Consumer USA as a whole at USD 8.3 billion and the bank's stake at USD 5 billion . The offer was ten times oversubscribed. After the transaction, Banco Santander will control 60.7% of SCUSA's capital. The bank sold a 4% stake, while the remaining part was sold by Auto Finance Holdings Series, a company owned by Centerbridge Partners , Kohlberg Kravis Roberts & Co., Warburg Pincus and DFS Sponsor Investments. The IPO generates a capital gain of EUR 740 million for the Santander group, which will be used entirely to strengthen the balance sheet. In 2006, Santander acquired a 90% stake in Drive Financial from HBOS and the company's founding partners for USD 651 million . Drive changed its name to Santander Consumer USA in 2008 and, in 2011, the bank reduced its stake to 65% when Auto Finance Holdings Series and Dundon DFS bought stakes through a capital expansion. This generated a capital gain of USD 1 billion for the bank, as a result of increasing SCUSA's value to USD 4 billion . The Santander Group has informed that it intends to increase the equity of Santander Holdings USA , which groups Santander Bank N.A and Santander Consumer USA , by up to USD 2 billion , to support its growth plans in the United States .

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Source: ENP Newswire

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