Nykredit Proposes Tender Offer to Acquire Spar Nord Bank Shares

Nykredit Proposes a Bold Move for Spar Nord Bank

Nykredit Realkredit A/S has made headlines with an exciting announcement regarding a recommended voluntary public tender offer for Spar Nord Bank A/S. This strategic move signals Nykredit's commitment to expanding its influence within the Danish banking landscape.

The Offer

Nykredit is set to offer DKK 210 per share for all shares of Spar Nord Bank, valuing the total share capital at DKK 24.7 billion. This offer will only exclude Spar Nord Bank's treasury shares. Importantly, the Board of Directors at Spar Nord Bank intends to recommend to its shareholders that they accept this well-structured offer, pending necessary regulatory approval from the Danish Financial Supervisory Authority (FSA).

The Shareholder Landscape

Nykredit currently holds a significant minority stake in Spar Nord Bank, owning 19.60% of the total share capital. With irrevocable agreements from the Spar Nord Foundation, which owns 20.27% of the shares, as well as commitments from members of Spar Nord Bank's board and executive team, Nykredit is poised to secure acceptance for a total of 40.17% of shares in the intended transaction.

Strategic Rationale for the Offer

Nykredit's rationale for this tender offer centers around long-term strategic growth. This merger between two major players in the Danish banking sector—Nykredit, currently the fourth largest, and Spar Nord Bank, the sixth largest—aims to fortify their collective market position. Together, they could become Denmark’s third-largest bank, boasting lending capabilities nearing DKK 160 billion by the end of the third quarter of 2024.

Creating Value Through Synergies

The combination of these two entities provides extensive opportunities for synergies that will enhance customer service and operational efficiency. It will allow both banks to leverage their combined strengths, particularly in serving personal and business customers, which is essential in today's competitive environment.

Perspectives from Leadership

Merete Eldrup, Chairman of Nykredit, underlined the strategic alignment between Nykredit and Spar Nord Bank. "We believe that by merging our strengths, we can offer customers an enhanced banking experience that fosters growth and community engagement," she stated. Moreover, Michael Rasmussen, Group Chief Executive of Nykredit, emphasized the importance of collaboration for sustained growth amidst rising market pressures.

Focus on Customer and Employee Experience

Significantly, Nykredit is committed to ensuring that the transition focuses on maintaining the excellent service that Spar Nord Bank customers expect. Existing advisors will continue to serve current customers throughout the merger process, thereby minimizing disruption.

Future Implications of the Offer

The Offer is expected to be completed in the first half of 2025, contingent upon necessary approvals and ownership thresholds being met. If successful, Nykredit will not only solidify its position within the market but will also consider delisting Spar Nord Bank's shares from trading on Nasdaq Copenhagen.

Long-Term Growth Vision

This move underscores Nykredit's ongoing commitment to building a robust banking environment that prioritizes customer satisfaction and sustainable business practices. With an eye on future growth, the leadership aims to navigate potential overlaps in operations while ensuring local branches maintain their distinct identities.

About Nykredit

Nykredit Realkredit A/S stands tall as a leading player in Denmark's mortgage credit landscape, known for its customer-centric approach and significant market share. With a history dating back to 1851, Nykredit has continually evolved, now offering a broad range of banking services, including wealth management, through its subsidiary Nykredit Bank.

Contact Information

For inquiries regarding this offer, stakeholders can reach out to Morten Bækmand, Head of Investor Relations at Nykredit (+45 4455 1521), or consult Orhan Gökcen, Head of Press, Nykredit (+45 3121 0639).

Frequently Asked Questions

What is the nature of the tender offer by Nykredit?

Nykredit is proposing to acquire all shares of Spar Nord Bank for DKK 210 per share, which is a significant premium over recent trading prices.

Why is Nykredit making this offer?

The intention behind the offer is to strengthen their market position and create a larger entity that can better serve customers and compete in the banking sector.

What will happen to the current employees of Spar Nord Bank?

Nykredit plans to retain current employees, especially those directly involved with customer service, to ensure a seamless transition.

How will this acquisition affect customers of Spar Nord Bank?

Customers can expect continued personalized service even as the banks combine resources, maintaining a strong local presence.

What are the next steps in the tender offer process?

After receiving regulatory approval, the final offer document will be published, and shareholders will then have the opportunity to accept the offer.

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