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Qatar to sell Santander Brasil stake in secondary offering

Qatar Investment Authority plans to sell up to 92 million units in Banco Santander (Brasil) SA in a global secondary offering, according to prospectus materials filed March 28.

Through unit Qatar Holding LLC, the sovereign wealth fund plans to sell 80.0 million units in the Brazilian unit of Banco Santander SA. It has also granted its underwriters an overallotment option for up to an additional 12.0 million units.

Based on the March 27 closing price of Santander Brasil's ADS units of $9.77, the secondary offering could be worth $781.6 million, or $898.8 million assuming a full exercise of the overallotment option.

In a statement, Qatar Investment Authority said that it currently has a 5.5% ownership stake in Santander Brasil, and the offering represents about 40% of its holding. The sale is part of "routine portfolio management activities," it said, noting that it expects to remain second largest shareholder of Santander Brasil after Banco Santander following completion of the offering.

The stake sale will simultaneously consist of a secondary unit offering in Brazil, along with an offering of units in the form of American depository shares outside of Brazil. Each unit consists of 1 common share and 1 preferred share in Santander Brasil.

Bank of America Merrill Lynch Banco Múltiplo SA and Banco de Investimentos Credit Suisse (Brasil) SA are serving as underwriters on the Brazilian offering, while Santander Investment Securities Inc., Merrill Lynch Pierce Fenner & Smith Inc. and Credit Suisse Securities (USA) LLC will underwrite the international offering.