Santander may take Brazilian payments firm Getnet private

div classBodysc17zpet90 cdBBJodivpSAO PAULO Reuters – Spains Banco Santander SA may take Brazilian payments company Getnet private seven months after the subsidiary made its trading debut on the Sao Paulo stock exchange, a securities filing showed late on Thursday.p

pGetnet, a direct subsidiary of Santanders PagoNxt Merchant Solutions, said its controlling shareholder intends to purchase all of the outstanding shares in the company and take it private.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe move would apply to shares and units listed in Brazil and to American Depositary Shares ADSs traded on the Nasdaq, Getnet said, without specifying the reasons for it.p

pThe company, formally known as Getnet Adquirencia e Servicos para Meios de Pagamento SA, made its trading debut in October 2021 with a market value of 7.3 billion reais.p

pGetnet said its controlling shareholder will offer 2.36 reais per common or preferred share and 4.72 reais per unit to purchase the outstanding stocks, implying a 29.3 premium over Thursdays closing price of 3.65 reais per unit.p

pUnits in Getnet were up 23 at 4.50 reais on Friday, reaching their highest level since late October but still sharply down from their trading debut.p

p“Getnets depressed valuation and a small freefloat were causing liquidity issues. Furthermore … it has failed to accomplish the initial goal of the spinoff, i.e. trading at higher multiples and unlocking value for the group,” analysts at Citi said.p

pRodrigo Crespi, an analyst at Guide Investimentos, said that Getnet‘s short time as a publicly traded company may bring some reservations about its future, but noted that Santander’s bid gives shareholders a significant upside.p

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pp Reporting by Andre Romani Additional reporting and writing by Gabriel Araujo Editing by Paul Simao and Chizu Nomiyamap

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