EUROPE - A group of three Nordic pension fund providers and a financial advisory firm have acquired FIH Erhvervsbank, a Danish lender, from Kaupthing Bank, the now defunct Icelandic lender, for DKK5bn (€670m).
The consortium consists of ATP and PFA Pension, two of the largest pension funds in Denmark; Folksam, the Swedish pension and insurance provider; and CPDyvig, a Danish independent financial advisor.
The group purchased 99.89% of the total shares, with the remaining shares being held by FIH employees.
Through a joint venture, ATP will hold 49.95% of the shares, while PFA will hold 19.98%, as will Folksam, leaving CPDyvig with 9.99% of the shares.
The purchase price has been structured as a cash payment of DKK1.9bn plus an earn-out payment of DKK3.1bn that will be adjusted for losses incurred until 31 December 2014 originating from the balance sheet as at 30 June 2010.
In connection with the acquisition, FIH has been offered a committed loan facility of DKK10bn from ATP.
FIH, headquartered in Copenhagen, is the sixth-largest bank in Denmark, with assets of DKK125bn and shareholder equity of DKK8bn as at 30 June.
FIH has leading positions in corporate banking, risk management solutions and corporate finance and has 370 employees.
Henrik Sjøgreen, chief executive of FIH, and the management board will continue in their current positions and be invited to invest further in FIH alongside the consortium.
Sjøgreen said: "The consortium will be an excellent owner considering the capabilities of the members including strong capital bases, broad networks and financial expertise.
"With the new ownership, we have a strong base of support from which to develop our business to become the preferred financial partner for Danish businesses."
Bjarne Graven Larsen, CIO of ATP, said: "We have a strong belief in FIH's unique position and expertise coupled with the demand for the financial services that the bank offers its clients.
"FIH is well positioned to capitalise on this, and we expect an attractive return on our investment."
Completion of the transaction is subject to the relevant regulatory approvals.