Handelsbanken proposes extra dividend in the form of Industrivarden shares (updated)
21/09/2021 17:34
(Adds detail, background)
STOCKHOLM, Sept 21 (Reuters) - Swedish bank Handelsbanken
SHBa.ST said on Tuesday it proposed an extra
"dividend-in-kind", consisting of shares in Industrivarden
INDUa.ST and corresponding to 4.42 crowns per share.
Investment company Industrivarden is Handelsbanken's biggest
owner, with 11% of shares, according to Handelsbanken's website.
"The board of directors proposes an extra dividend of shares
in Industrivarden corresponding, as of today, to a value of
approximately 8.7 billion Swedish crowns ($1.00 billion), or
4.42 Swedish crowns per share in Handelsbanken," the bank said
in a statement.
"The bank’s exposure to shares in the pension management is
reduced through a dividend in the form of shares, which
increases long-term stability in the bank’s capitalisation," it
said, adding that the proposal came on the back of a good
capital situation. urn:newsml:reuters.com:*:nL1N2OS07J
The bank said the shares were currently managed by the
pension fund Handelsbankens Pensionsstiftelse but it would buy
them before distributing to shareholders.
With the "dividend-in-kind", the bank estimated its common
equity Tier 1 capital ratio, a measure of financial health,
would fall to around 19.4% from 20.5%.
($1 = 8.6757 Swedish crowns)
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Sweden's Handelsbanken net earnings top forecast
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(Reporting by Anna Ringstrom; Editing by Edmund Blair and Lisa
Shumaker)
((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters
Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))