Finnish insurer Sampo cuts stake in Nordea (updated)
11/11/2020 07:48
(Adds activist Elliott's comments)
HELSINKI, Nov 11 (Reuters) - Finnish insurer Sampo
SAMPO.HE has sold 4% of the share capital in Nordea Bank in an
accelerated bookbuild offering to institutional investors, it
said late on Tuesday.
Activist investor Elliott Advisors ECAL.UL said it had
acquired investments equivalent to more than 3% of Sampo's share
capital and welcomed Sampo's decision to begin the disposal of
its investment in Nordea.
In a statement on Wednesday, Elliott said the move could
turn the Sampo into a pure-play insurance champion and unlock 7
billion euros ($8.3 billion) in value.
The stake was sold at 7.25 euros per share, to be compared
to Nordea's closing price of 7.59 euros on Tuesday, and Sampo
said it would incur a 222 million euro ($262 million) accounting
loss from the transaction for the last quarter in 2020.
After the sale, Sampo remains the biggest owner in Nordea
with a 15.9% stake.
A spokesman for Nordea said the bank does not comment on
changes in its shareholder base.
The move would provide much needed focus and strategic
clarity for Sampo and alleviate investor uncertainty surrounding
its strategy, Elliott said.
Elliott said Sampo's share price has suffered due to
Nordea's weak share price, and has in turn caused a substantial
de-rating of Sampo's insurance assets.
Sampo also said it had entered a lock-up undertaking,
agreeing not to sell any Nordea shares before May 9, 2021.
($1 = 0.8457 euros)
(Reporting by Johannes Hellstrom and Colm Fulton in Stockholm,
Anne Kauranen in Helsinki and Sinead Cruise in London; Editing
by Simon Johnson, Karin Strohecker and Louise Heavens)
((johannes.hellstrom@thomsonreuters.com; +46850242388; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))