Spanish commercial bank Banco Santander S.A. (SAN,BNC.L) has greed to buy Carfinco Financial Group Inc. (CFN.TO,CFN_UN.TO) for C$298 million in cash, with an aim to enter the Canadian market.
Under the agreement, Carfinco shareholder will receive C$11.25 for each common share of Carfinco, representing total equity value of about C$298 million.
Commenting on the acquisition, Juan Rodriguez Inciarte, senior executive vice president and head of Strategy at Santander, said: "We are excited to sign this agreement with Carfinco, which allows us to enter a market with good growth potential such as Canada, where we hope to reach agreements with other car manufacturers like those we have signed in other countries."
The transaction is expected to close in the fourth quarter of 2014.
In connection with the arrangement, Carfinco said it will pay a special dividend to shareholders of record on the closing date.
Santander's financial advisor is RBC Capital Markets and their legal counsel is Blake, Cassels & Graydon LLP, while Carfinco's legal counsel is Bryan & Company LLP and counsel to the Independent Committee is Fogler, Rubinoff LLP.
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