Banco Security to get US$102mn injection following parent's capital hike

Friday, July 15, 2011

Chilean diversified financial conglomerate Grupo Security will inject 47bn pesos(US$102mn) in its banking unit - Banco Security - following the group's recently closed capital increase, according to a company press release.

Grupo Security managed to increase its capital by 66.5bn pesos, divided between 36.2bn pesos the company received by selling 182mn new shares at 200 pesos apiece at local stock exchange BCS - equal to 40% of the group's capital increase - and 30.2bn pesos subscribed by current shareholders.

The capital increase will be used to boost capital for the group's subsidiaries under its business plan, including the aforementioned banking subsidiary, as well as for its factoring and real estate units. This was the company's seventh capital increase ever.

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Minority shareholders increased their participation in Grupo Security's ownership structure to 30.2% from 26.8% prior to the capital hike. This was one of the group's goals in order to boost the stock's trading and liquidity.

Grupo Security also operates some 10 other subsidiaries including P&C and life insurance and fund management businesses, among others. Its market cap currently stands at above US$1.1bn.