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Banking

Regulators authorize Banistmo's takeover of Bancosal

Publication: Business News Americas - English News

Provider: Business News Americas

Regulators authorize Banistmo's takeover of Bancosal

El Salvador, Panama - Panamanian financial group Grupo Banistmo has received authorization from banking regulators in El Salvador and Panama to move ahead with its acquisition of up to 60% of El Salvador's Inversiones Financieras Bancosal banking group. Banistmo was due to launch its public tender offer for Bancosal shares on the El Salvadorian stock exchange on November 12, the group said in a statement. The tender offer will close on November 26.

Banistmo announced on October 21 it would pay US$2.10 a share in cash to acquire 51-60% of Bancosal, which has more than US$1.77bn in assets and owns El Salvador's third largest bank Banco Salvadoreño. The deal will be financed through a short-term bridge loan.

The transaction values Bancosal and its 115,504,000 shares at nearly US$243mn, according to the El Salvador stock exchange.

Banistmo has become the region's largest financial group with US$6.45bn in assets at June 30 thanks to a string of acquisitions and startup projects over the last three years. Today the group has banking operations in Panama, Honduras, Costa Rica, Nicaragua and Colombia.

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