Brief: Sydbank To Acquire ALM. Brand Bank

ALM. Brand A/S

01/10/2020 07:33

Oct 1 (Reuters) - Sydbank A/S  SYDB.CO :
    * REG-SYDBANK A/S TO ACQUIRE ALM. BRAND BANK A/S
    * SYDBANK A/S - PARTIES HAVE AGREED A PRICE INVOLVING
PAYMENT OF
VALUE OF EQUITY AT DATE OF ACQUISITION DEDUCTING INTELLECTUAL
PROPERTY RIGHTS AND ADDING DKK 25M
    * PARTNERSHIP IS EXPECTED TO INCREASE BUSINESS VOLUME AND
INCOME
OF BOTH PARTIES
    * PROJECTS THAT IN A 3-5 YEAR PERIOD ANNUAL INCOME FROM THIS
COOPERATION WILL REPRESENT AROUND DKK 40-50M.
    * PARTIES HAVE AGREED A PRICE INVOLVING PAYMENT OF VALUE OF
EQUITY
AT DATE OF ACQUISITION DEDUCTING INTELLECTUAL PROPERTY RIGHTS
AND ADDING DKK 25M
    * CASH PURCHASE PRICE CANNOT BE FINALLY CALCULATED UNTIL
DATE OF
ACQUISITION.
    * PROVISIONALLY CALCULATED PURCHASE PRICE TOTALS DKK 1,833M,
EQUAL
TO 95% OF BOOK EQUITY.
    * ACQUISITION INCLUDES APPROX 55,000 NEMKONTO (EASY ACCOUNT)
CUSTOMERS, BANK LOANS AND ADVANCES TOTALLING DKK 4.8BN
    * IT MUST BE EXPECTED THAT ACQUIRED PORTFOLIO OF LOANS AND
ADVANCES OF DKK 4.8BN WILL DECREASE TO BETWEEN DKK 3.5BN AND DKK
4.0BN
    * EXPECTED DECLINE IS MAINLY ATTRIBUTABLE TO AN EXPECTATION
THAT
LOANS AND ADVANCES TO WEAK CORPORATE CLIENTS WILL BE PHASED OUT
    * ANNUAL RESULTS ARE PROJECTED TO INCREASE BY APPROX DKK
100M AS
FROM 2022.
    * IT IS EXPECTED THAT ACQUISITION WILL RESULT IN A DECLINE
IN
SYDBANK'S CAPITAL RATIOS OF AROUND 2 PERCENTAGE POINT
    * 2020 PROFIT AFTER TAX IS STILL EXPECTED TO BE IN RANGE OF
DKK
600-800M

Source text for Eikon:  ID:nGNE8z0L9v 
Further company coverage:  SYDB.CO 

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