Íslandsbanki raises the voluntary offer for BNbank

Monday 29 November 2004 00:27 CET | News

Íslandsbanki raises the voluntary offer for BNbank - has support from approx. 60 percent of the shares.

Íslandsbanki hf. of Reykjavik, Iceland has resolved to raise the banks voluntary offer to buy all outstanding shares in Bolig- og Næringsbanken ASA (BNbank) to a price per share of NOK 340. Íslandsbanki now owns or has rights to approx. 46 percent of the total shares in BNbank. In addition, shareholders owning in aggregate approx. 14 percent have informed Íslandsbanki that they will accept the voluntary offer. On 15 November Íslandsbanki announced that it would make a voluntary offer for all the outstanding shares in BNbank. At the time the offer was announced, Íslandsbanki owned or had rights to a total of 46 percent of the shares in BNbank. Following constructive discussions with BNbanks advisors and some of the banks larger shareholders Íslandsbanki has now resolved to raise the offer. Details of the new voluntary offer: * NOK 340 per share in cash in a public offering * Total transaction value NOK 3.3 billion * Offer premium of approx. 26 percent compared with the last traded share price before the first offer was presented 15 November * 3 percent p.a. interest rate compensation from acceptance until completion * Anticipated offer period 1-17 December Since Íslandsbanki raised its offer, additional shareholders have informed the bank that they will accept the voluntary offer, bringing Íslandsbankis total holding in own shares and acceptances up to approx. 60 percent. This includes the 20 percent holding Íslandsbanki previously agreed to acquire from Sparebanken Øst (conditional upon approval from Norwegian authorities), the 9.8 percent bought in the market and previous pre-acceptances representing approx. 16 percent of BNbanks share capital. Íslandsbanki has defined Norway and Iceland as its home markets, and the bank has high ambitions in the Norwegian market. Through a positive and constructive dialogue with advisors to BNbanks Board of Directors and management, Íslandsbanki has emphasized its plans to keep BNbank as a separate entity and to continue to develop BNbanks core expertise from BNbanks headquarters in Trondheim. Íslandsbanki is committed to retain the number of employees in BNbank at the current level and aims to support Íslandsbankis Norwegian activities, which also include KredittBanken, with financial backing and a broader product range. A formal offer document will be prepared and sent to BNbanks shareholders before the offer period starts on 1 December.

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Categories: Payments & Commerce | Payments General
Countries: World
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