NEW YORK (TheStreet) -- Shares of Banco Santander (Brasil) SA (BSBR) are sinking, down 7.21% to $5.09, in early market trading, after parent company Banco Santander S.A. (SAN) announced it had increased its ownership of its Brazilian subsidiary last Friday.
Banco Santander raised its stake in its Brazilian unit to 88.3%, executing an offer to buy out minority shareholders, according to a regulatory filing.
Investors who held 13.65% of BSBR's capital accepted the buyout offer.
CEO Javier Marin said the share buyback program would enable the group's profits to grow by 7% in both 2015 and 2016, and added that Banco Santander will issue 370.9 million new shares to complete the offer, which is equivalent to 3.09% of its share capital.
Share of Banco Santander are also down 1.37% to $8.65 today.