Spanish bank Santander Central Hispano has offloaded its Patagon America Internet business to Wenceslao Casares and Guillermo Kirchno for $9.84 million, as part of a move to concentrate its online banking activities in Europe.
Under the deal, Santander Central Hispano has acquired the remaining 11.41 per cent of the share capital of Patagon Euro previously held by Wenceslao Casares, Guillermo Kirchner and other minority shareholders for $22.02 million, thus gaining control of 100 per cent of the company's capital. The bank has subsequently sold 100 per cent of Patagon America to Wenceslao Casares and Guillermo Kirchner fo $9.84 million.
The agreement includes the transfer of the Patagon brand name to Patagon Euro, establishing a maximum time-limit of 30 days for Patagon America to cease operating under the name.
The Santander Central Hispano Group will charge a total amount of EUR700 million against its earnings statement for the second quarter. This includes an amount of EUR616 million with respect to goodwill pending amortisation.
Santander Central Hisapano says it will now concentrate its online banking activity in Europe, with the aim of consolidating profitability in Spain and Germany. Patagon Internet Bank in Spain has over 273,000 customers, an increase of 95,000 over the past year, and balance sheet funds of EUR2170 million. In Germany, Santander Direkt Bank has 130,000 customers and a business volume of EUR1690 million.