Qatar Investment Authority (QIA), the country's sovereign wealth fund has announced plans to sell its 40 per cent stake in Santander Brasil, the Brazilian unit of top Spanish bank Santander.

The sold shares by the Qatari fund are worth as much as $900 million, thanks to a more than 75 per cent rally in the stock over the past year, as per Bloomberg data.

Announcing the stake sale, QIA said this transaction forms part of the routine portfolio management activities undertaken by QIA from time to time.

Under this deal, QIA will be offering 80 million units composed of one common share and one preferred share in Banco Santander (Brasil) SA to international investors in a sale being underwritten by banks including Credit Suisse Group AG and Bank of America’s Merrill Lynch unit.

It also launched a secondary public offering of its American depositary shares (ADS) of Santander Brasil.

Each ADS represents the right to receive one unit, which is composed of one common share, no par value, and one preferred share, no par value, of Santander Brasil, it added.  

Following this transaction, QIA now holds approximately 5.5 per cent of Santander Brasil’s equity.

It had been an investor in Santander Brasil for close to seven years and, following the completion of this offering, expects to remain the second largest shareholder of Santander Brasil after Banco Santander, said the Qatari wealth fund in its statement.

In 2010, Qatar had bought a 5 per cent stake in Santander Brasil for $2.7 billion.

In connection with the offering, QIA has agreed to enter into a customary lock-up. The offering will be underwritten by BofA Merrill Lynch, Credit Suisse and Santander Investment Securities, said the statement.

QIA expects to grant to the underwriters of the offering an option to purchase up to an additional approximately 15 per cent of the ADSs being offered, it added.-TradeArabia News Service