London – LAWFUEL – Allen & Overy LLP today announced that it is advising Alliance & Leicester plc on its recommended acquisition by Banco Santander S.A.. The acquisition, which will be implemented by way of a scheme of arrangement, values each A&L ordinary share at 299 pence and its existing issued ordinary share capital at £1,259 million. Taking account of the interim dividend Alliance & Leicester intends to declare, the total value shareholders will receive represents 317p per ordinary share.
The acquisition is due to complete in October 2008, subject to certain approvals by Santander shareholders and A&L shareholders and the sanction of the scheme by the Court. Merger control approvals and regulatory clearances from the Financial Services Authority and the Bank of Spain will also need to be obtained. Under the terms of the Acquisition, A&L ordinary shareholders will receive one Santander share for every three A&L ordinary shares. Shareholders will also receive an interim dividend in cash of 18 pence per share which A&L intends to declare before completion.
Alliance & Leicester is one of the UK’s major financial services groups, offering a broad range of financial services and products to personal and commercial customers.
Santander is a group of banking and financial companies that operates through a network of offices and subsidiaries across Spain and other European and Latin American countries (including the United Kingdom). As at 11 July 2008, Santander Group was the sixth largest banking group in the world by market capitalisation and the largest banking group in the euro zone.
Commenting, Mark Wippell said: ” We are delighted to be assisting the board of Alliance & Leicester, a longstanding client of the firm, on this key transaction.”
The Allen & Overy team is being led in London by corporate partner Mark Wippell, assisted by corporate partners Anna Buscall and Louise Wolfson, senior associates Colin Bole and Krishna Raman, associates Elvan Hussein and Nicholas Manassei and by corporate partner Juan Barona and tax partner Carols Albinana in Spain.
For further information please contact Karen Levin ([email protected]) +44 20 3088 4341.