Grupo Financiero Interacciones, S.A.B. de C.V. (GFINTER) Entered Into Merger Agreement With Grupo Financiero Banorte, S.A.B. de C.V. (GFNORTE) In A Value Enhancing Transaction

MEXICO CITY, Oct. 25, 2017 /PRNewswire/ -- GFINTER announced today that it has entered into a master merger agreement, whereby GFINTER will merge into GFNORTE in a 50% stock / 50% cash transaction.

The transaction is structured so that GFINTER's shareholder base will receive on the one hand, a cash payment of Ps.13,712,587,103.60 and on the other hand, 109,727,031 shares of GFNORTE; in exchange for all GFINTER's shares.

"Bringing these two great financial institutions together, will complement origination efforts by adding our structuring services and government expertise, as well as providing to our current government footprint consumer capabilities. New streams of revenue will be created by offering complementary products in existing markets."

The transaction also reflects the confidence of Interacciones' shareholders in the future of our country's economy.

The merger has, among others, the following benefits:

• Strengthening net interest income.
• Efficient scaling by adding structuring services to a consumer platform, creating the most important Mexican financial solutions provider in the country.
• Diversifying sources of revenue by adding cross selling opportunities among complementary commercial channels, reducing the associated risks and narrowing current valuation discount.
• Improving the stock's profile by its integration into a stock with higher liquidity and valuation, due to the above-mentioned benefits.

The transaction is subject to the approval of GFNORTE's and GFINTER's shareholders to be held at a general extraordinary shareholder meeting, and to the authorization of the Mexican relevant regulatory authorities.

VACE PARTNERS acted as exclusive financial advisor to GFINTER and Barclays provided a Fairness Opinion.

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SOURCE Grupo Financiero Interacciones, S.A. de C.V.