FI Newsletter

Danske Bank Group acquires Finnish bank
The Danske Bank Group has today signed an agreement to purchase all the shares of Sampo Bank for a cash amount of DKr30.1bn. Sampo Bank, which is acquired from Sampo Group, is the third largest bank in Finland with an extensive branch network, subsidiaries in Estonia, Latvia and Lithuania, and a recently acquired bank in Russia.

In connection with the purchase, the Danske Bank Group plans to issue new shares which are expected to provide proceeds of up to DKr14bn. The remaining purchase amount will be funded through the issue of tier 1 hybrid capital, subordinated debt and through other liquidity sources.

The Danske Bank Group strengthens its position in the Nordic region
With the purchase of Sampo Bank, the Danske Bank Group strengthens its position as a significant, competitive player on the Nordic financial market.

"Our investment in Finland is in line with the Group’s strategy of expanding its retail banking activities in Northern Europe," says chief executive Peter Straarup. "Our joint banking concept – the Danske Banking Concept – provides a sound platform for expansion. Sampo Bank is attractive because its retail banking profile and structure match ours and support our strategy of further geographical and risk diversification. Another advantage is that economic growth in Finland and in Estonia, Latvia and Lithuania exceeds the EU average. That provides an excellent basis for continuing growth."