Santander shares - had a strange letter today

Bogof_Babe

I have 300 Santander shares from when they were launched (think it was Abbey National then), got 100 free and bought another 200 at a giveaway price. Never paid much attention to them as the dividends covered what I'd paid for them within a year or two, and I still get a few quid three(?) times a year.

However today I received a letter as per the below:

Dear Shareholder,

I am writing to inform you that the board of directors of Banco Santander has called an extraordinary general meeting of shareholders to be held on 23 July 2019 at 8.30 a.m. ... [venue and address in Spain].

At this meeting, the capital increase, announced on 12 April 2019, which is required to carry out the offer to acquire all the securities representing the share capital of Banco Santander Mexico, S.A, [etc. etc.] not already owned by the Santander Group, will be submitted for examination and, where appropriate, shareholder approval.

[Then some stuff about voting]

Having read it again now while copy typing, I think it doesn't actually affect UK shareholdings, but could someone confirm this is correct, as it's the first I have heard of it.

phi1

I'm in a similar position. It looks like it affects everybody but I'm not sure whether it's for good or bad. I looked up "capital increase" at investopedia.com.

LobsterMemory

Looks to me like they're raising funds to buy the rest of the Mexican bank by issuing extra shares.

Because that reduces existing share holders %age holdings or it's a significant amount, they have to get approval from them.

Unless you have reasons otherwise, it's not going to affect you much one way or another (even if it did you're a minnow with 300 shares so have little say).

Feel free to not worry about it.