A consortium consisting mainly of Danish and Swedish insurers has agreed to buy Danish corporate and investment bank FIH for 5 billion Danish crowns ($879 million), the buyers announced on Sunday.
Danish pension insurers ATP and PFA Pension, Swedish insurance company Folksam and Danish financial consultancy CPDyvig will pay 1.9 billion crowns in cash and an “earn-out” payment of 3.1 billion to buy FIH from the remnant of failed Icelandic bank Kaupthing, the buyers said in a statement.
The earn-out portion will depend on FIH’s realised losses up to end-2014 and FIH’s eventual gain from its stake in Axcel III fund, the buyers said. The consortium agreed to buy Kaupthing Bank hf’s 99.89 percent stake in FIH Erhvervsbank A/S (FIH), said the buyers who will hold their shares in a joint venture.
FIH and employees own the remaining 0.11 percent, they said. ATP will own 49.95 percent, PFA Pension and Folksam each get 19.98 PCT and CPDyvig 9.99 percent of FIH, they said. FIH Chief Executive Henrik Sjogreen and the executive group will stay in place, the consortium said.
“Completion of the transaction is subject to the relevant regulatory approvals,” it said.
In conjunction with the deal, ATP has offered to provide the FIH Group with a loan facility of 10 billion crowns, the consortium said.
Source : Reuters
