Banco Santander – Santander Brazil Exchange Offer: Potential Index Impact

Research evidence excerpt

Banco Santander – Santander Brazil Exchange Offer: Potential Index Impact

J P M O R G A N Global Markets Strategy

31 July 2026

Banco Santander – Santander

Brazil Exchange Offer

Potential Index Impact

Banco Santander (SAN SQ) announced its plan to launch a voluntary exchange Global Quantitative and Derivatives

offer for the shares of Santander Brasil (SANB11 BS) (see here). The offer is not Strategy

subject to minimum acceptance level and there is no intent to delist Santander Min Moon AC

Brazil. Each share of Santander Brazil unit (SANB11 BS) or ADS will be (1-212 ) 272-8456

exchanged with 0.4056 Banco Santander shares, delivered as BDRs in Brazil or min.k.moon@jpmorgan.com

ADSs in US. This offer implies a 15% premium to the Santander Brazil unit. J.P. Morgan Securities LLC

Priyanka Saraf

(1-212) 270-1410

Currently, Banco Santander owns about 90% of Santander Brazil. If all of the priyanka.saraf@jpmorgan.com

minority shares are tendered and exchanged, Banco Santander will issue about J.P. Morgan Securities LLC

AC156M shares. This will result in share increase of Banco Santander. Pankaj Gupta, CFA

(44-20) 7134-5483

Santander Brazil will be deleted from the indices if majority of the minority shares pankaj.gupta2@jpmorgan.com

are tendered. FTSE will remove the company if the remaining free float is less than J.P. Morgan Securities plc

5%.

Index Membership:

• Banco Santander is in the MSCI Europe, FTSE Europe, IBEX, Stoxx Europe

600, Euro Stoxx Banks, Euro Stoxx 50, and Stoxx Europe 50.

• Santander Brazil is in the IBOV and FTSE Brazil.

We present the index impact under two scenarios—(1) assuming 100% acceptance

and (2) assuming 50% acceptance—in Tables 1 through 4 below. Note that IBOV

has a significant index-arb position, with short AUM against the index; therefore,