Corpbanca OKs $650m Raise

Shareholders of Chile’s Corpbanca have approved a $650m capital increase, in a needed step to finalize the December acquisition of Santander’s Colombia unit, Corpbanca says. The capital increase will result in the issuance of 48bn new shares that Corpbanca hopes to sell between May and June, an investor relations official says. Corpbanca plans to begin a road show in May and expect to have obtained the funds by the end of June. The capital increase comes as a prerequisite to finalizing the acquisition of Santander’s Colombia assets, first announced in early December. As agreed, Corpbanca is acquiring a 95% stake in of the Santander unit in Colombia for $1.16bn, a transaction with an implied multiple of roughly 2.7x book value.