Banco Security Successfully Completes Acquisition and Merger with Banco Penta's Asset Management Business
The transaction includes almost Ch$800 billion in assets, positioning Inversiones Security as a leading asset management business.
Banco Security and its subsidiaries reported material events today to the Superintendency of Banks and Financial Institutions (SBIF) and the Superintendency of Securities and Insurance (SVS). These report that Penta Administradora General de Fondos S.A. and Penta Corredores de Bolsa S.A. were acquired on this date and successfully merged with the respective subsidiaries AGF Security and Valores Security, and the acquired companies were then dissolved.
The agreed price was CH$36,036 million, comprising CH$30,809 million in assets backed by highly-liquid instruments valued at market value, and CH$5,228 million in goodwill, equivalent to 0.66% of assets under management.
The Grupo Security CEO, Renato Peñafiel, remarked that "the price of CH$36,036 million was higher than the price originally agreed (CH$19,500 million) due to the higher book value of the brokerage firm's equity, which instead of the original figure of CH$13,500 million was in fact CH$29,503 million. We opted to merge operations in February, instead of first reducing capital, in order to incorporate customers by the planned deadlines. A capital reduction is a more lengthy process that would have delayed the companies' commercial integration."
This transaction will consolidate the position of Security as a leading asset management and brokerage business, confirming that Grupo Security is continuously looking for growth opportunities across all its businesses.