Chile’s CorpBanca is planning to purchase Helm Bank in Colombia in a deal valued at $1.28bn, in a bid to increase its presence and market share in the country.
Bloomberg reported citing a filing with Chile’s securities regulator that an agreement has been signed with 91% of Helm’s ordinary shares owners, while remaining stake held by minority shareholders will be issued an offer.
The Chilean bank will also pay $17m for 80% of Helm’s insurance unit.
A capital increase of about $1bn is likely to be raised by the bank’s Colombian unit, which will include $440m and $285m from Helm’s owners and Corpbanca respectively, according to the filing.
The deal is expected to conclude in the first quarter of 2013.
CorpBanca has recently completed acquisition of Spanish bank Banco Santander’s Colombian assets.
As of July 2012, Helm Bank had $6.64bn in total assets and $4.51bn in deposits and owns a subsidiary in Panama and a brokerage in the country.