April 30, 2014, 7:49 a.m.

What is not to like about Banco Santander’s offer to buy the part of its under-performing Brazil subsidiary that it does not own?

For Santander, the deal looks opportunistic. Santander Brasil has been in the doldrums in recent years. Compared with its listing in October 2009, the shares had lost nearly half their value as of Monday, when they were trading at R$12.74, less than book value.

By buying back these shares using Santander parent stock, the bank gets a bargain while shareholders are being offered a 20 per cent premium to the present market price. With the outlook for the Brazilian economy continuing to look hazy, many minority shareholders will run for the exits.