Latin America Financials: Citi‘s Daily Statement – 2026.07.31 – Santander Brasil exchange offer; BCRA potential reform; Chart of the Week; Bajo

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31 Jul 2026 08:33:00 ET │ 12 pages

Latin America Financials

Citi’s Daily Statement – 2026.07.31 - Santander Brasil exchange offer;

BCRA potential reform; Chart of the Week; Bajio

CITI'S TAKE

Daily report over key topics of LatAm financial companies under Citi’s

coverage.

Gustavo SchrodenAC

Santander Brasil (SANB11.SA) - Exchange Offer: More value for Madrid than for São

Paulo

Citi's Take: Santander Spainannounced a voluntary exchange offer to acquire the

~10% free float of Santander Brasil, offering Banco Santander (Spain) shares

through BDRs/ADSs at an implied 15% premium to SANB11's closing price. The

transaction does not seek to de-list Santander Brasil from B3 and is not subject to a

minimum acceptance condition. We view the proposal as strategically attractive

for Santander Spain mostly. On the positive side: SANB11 shareholders crystallize

value at a premium and gain exposure to a larger, more diversified global banking

franchise, while Santander uses a higher-valued currency to increase ownership of a

core growth asset. Based on our estimates, the deal implies a valuation of ~1.1x P/BV

for SANB, above its undisturbed valuation (~1.05x) but still below Banco

Santander's own valuation (~1.55x P/BV), suggesting the transaction should be

accretive for the parent.

Arnon Shirazi, CFA

Brian Flores, CFA

Banco Santander (SAN.MC) - SAN Group announces offer to acquire minorities at

SAN Brasil

Citi's Take: SAN announced yesterday evening it will acquire the c.10% of Santander

Brasil that it does not already own through a voluntary exchange offer with newlyissued shares of the parent. The offer implies a 15% premium to the reference SAN

Brasil share price and a maximum consideration of €1.9bn (c.1.1% of group shares).

The transaction is aimed at simplifying the group, with limited execution risk. SAN

expects the transaction to be neutral on capital, and to be accretive by c.0.5-0.6%

on group EPS and TBVS. We expect the market to have a muted reaction.

Argentina Diversified Banks - BCRA Reform: A potential turning point for banks

Citi's Take: For our banks coverage, we view the proposed BCRA reform as initially

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