Danske Bank acquired Sampo Bank for a total consideration of €4.05bn, or DKr30,2bn. Of the total consideration, shareholders' equity amounted to €1.2bn/DKr9.3bn, goodwill €2.4bn/DKr17.8bn and intangibles €0.7bn/DKr5.1bn.
There was no requirement for an extraordinary general meeting at Sampo Bank to approve the transaction.
- Total synergies of DKr610m pre-tax; full accounting effect in 2010
- Integration costs of DKr1.550m
- Lowering of core capital (ex hybrid) ratio target to 5.5%–6.0% (6.0%-6.5%)
- Increasing hybrid capital to 1.0%-1.5% (0.5%-1.0%)
- Maintaining core capital ratio including hybrid 6.5%-7.5%
- Issuance of new equity at market price, of approx. DKr14.7bn was successfully executed November 16, 2006
- Closing of transaction February 1, 2007
Financing the dealThe offer was a fully financed cash offer and the financing mix included the following ingredients:
- Equity issuance
- Tier 1 hybrid issuance
- Securitisation of mortgages and corporate loans
Overview of the deal
| The deal |
m |
m |
| Acquisition price |
30,232 |
4,050 |
| Synergies |
610 |
82 |
| Integration costs |
1,550 |
209 |
| Financing |
bn |
bn |
| Share capital |
15 |
2 |
| Hybrid capital & other liquidity |
15 |
2 |
| Total |
30 |
4 |
Merger permission
By its resolution No 4.1-1/34 of April 2, 2008, the Estonian Financial Authority has issued a merger permission to Danske Bank A/S and AS Sampo Pank.
Last updated on April 4, 2008