Chile CorpBanca to offer stock for Colombia buy

Chilean bank CorpBanca will offer 43 billion shares to raise up to 268.75 billion pesos ($550 million) to help pay for its purchase of Banco Santander Colombia, about $100 million shy of the maximum amount shareholders approved in April for its capital increase.

Shares will be sold at 6.25 Chilean pesos each, CorpBanca , Chile's fifth largest bank in terms of loans, said in a filing with the local securities regulator late on Thursday.

CorpBanca's shareholders in April gave the bank the green light to issue up to 48 billion shares to raise some $650 million.

Late last year, CorpBanca agreed to buy Banco Santander's banking affiliate, as well as its other units in Colombia, for about $1.23 billion, as Spain's Santander moved to sell assets in Latin America to help shore up finances at home.

If the deal is completed, it will be the biggest acquisition abroad by a Chilean financial institution.

Colombia has become a magnet for international investors as government troops push drug-running rebels deep into the jungles, opening wide areas of the country that had long been controlled by leftist guerrillas.

Chile's CorpGroup conglomerate, led by businessman Alvaro Saieh, has units in banking, retail and communications.