DnB NOR to sell ELCON to Santander

Wednesday 31 March 2004 09:58 CET | News

Norwegian DnB NOR Bank ASA has entered into an agreement with Santander Consumer Finance, a subsidiary of the leading Spanish banking group Grupo Santander, for the sale of ELCON Finans AS.

DnB NOR will receive a total consideration of approximately NOK 3,600 million, which includes profits generated by ELCON in 2004 until the transaction is completed. (Expected within three months.) In 2003 ELCON reported profits after tax of NOK 259 million. At 31 December 2003 shareholders equity stood at NOK 2,270 million and total assets at NOK 28,365 million. DnB NOR will continue to offer its customers market leading asset finance and factoring solutions through DnB NOR Finans. The sale of ELCON satisfies one of the major requirements set out by the Norwegian Competition Authority in its approval of the DnB NOR merger. The transaction represents a key milestone in the integration of DnB NOR. The exclusion of Elcon Finans from DnB NORs consolidated balance sheet will improve the Groups tier 1 capital ratio by approximately 0.3 percentage points, not including the capital gain. The capital gain of approximately NOK 1,000 million will fully offset DnB NORs first-quarter merger-related restructuring charge. The transaction is subject to regulatory approvals in Norway and Spain. DnB NOR was advised by JPMorgan and DnB NOR Markets, and Santander was advised by Alfred Berg ABN Amro.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce