MADRID, March 7 Spain's Santander has sold a 25
percent stake in mutual fund platform Allfunds Bank for around
470 million euros ($498 million) to private equity Hellman &
Friedman and Singapore sovereign wealth fund GIC, the Spanish
lender said on Tuesday.
The sale would earn the bank net capital gains of around 300
million euros, Santander said.
Together with the acquisition of 50 percent of its asset
management business from Warburg Pincus and General Atlantic in
November, the sale would have a return on invested capital of
over 20 percent in 2018 and over 25 percent in 2019, it said.
By the end of 2017, both operations would hit core equity
tier 1 by around 11 basis points, the bank said.
Italy's Intesa Sanpaolo also said it had agreed to
sell its 50 percent share in Allfunds Bank to Hellman & Friedman
and GIC for around 900 million euros in cash on Tuesday.
($1 = 0.9446 euros)
(Reporting by Jose Elias Rodriguez; Writing by Paul Day;
Editing by Robert Hetz)