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January 29, 2014
06:43 EDTBCACorpBanca agrees to merge with Itau in Chile, combine business in Columbia
CorpBanca , CorpGroup, and Itaú Unibanco announce that today they have entered into a definitive agreement to merge CorpBanca and Banco Itaú Chile in a stock-for-stock transaction. The transaction will create a new Chilean Bank that will operate under the Itaú name. Through this merger, Itaú Unibanco and CorpBanca will combine their banking businesses in Chile and Colombia to create an Andean banking platform. Following the closing of the transaction, Itaú Unibanco will be the controlling shareholder of the new merged Chilean Bank with a 33.58% ownership interest. Additionally, at closing, Itaú Unibanco and CorpGroup will sign a shareholders' agreement to determine aspects related to corporate governance, transfer of shares and liquidity among others. The new Chilean Bank will control CorpBanca´s and Itaú Unibanco´s Colombian subsidiaries. This transaction is subject to regulatory approvals from the Brazilian, Colombian, Chilean, Panamanian and U.S. regulators and also subject to Banco Itaú Chile's and CorpBanca's shareholders' approval. If approved, CorpBanca's current shareholders will own 66.42% of the bank resulting from the merger of CorpBanca and Itaú Chile while Itaú Unibanco will own the remaining 33.58%. Prior to the closing of the merger, Itaú Unibanco will make a $652M equity infusion into Itaú Chile. Management expects to receive all required approvals by the end of the fourth quarter of 2014. CorpBanca anticipate that closing will occur shortly following the receipt of all required regulatory approvals. CorpBanca will be the surviving entity. Under the merger agreement, Itaú Unibanco will exchange all of the shares of Banco Itaú Chile in exchange for 172,048MM newly issued shares in CorpBanca, representing a 33.58% direct stake of the Chilean Bank immediately following the closing. Following the closing, the new Chilean Bank will acquire and control 100% of Itaú Colombia.
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