Spar Nord Bank has recently made a proposition to completely take over its peer Danske Andelskassers Bank. The premise of the offer was that both banks shared a similar business approach, and a merger would be beneficial for both parties. Both businesses are focused on providing loans in a customer-focused way.
Spar Nord Bank already owns 30.89% of the share capital in Danske Andelskassers Bank and the same percentage of the voting power within the organization. This makes Spar Nord Bank the largest individual shareholder in the other bank. The offer to acquire the bank was 7.75 Danish kroner per share in the bank.
This offer price consists of one Spar Nord Bank share that is valued at 10 kroner plus 13.35 kroner in cash for every nine shares in Danske Andelskassers Bank which are valued nominally at 2 kroner each.
This implies that there is a premium of about 19% to Danske Andelskassers Bank’s closing price stated on Feb. 28. This is also a premium of around 105% to Danske’s closing price of Sept. 25, 2018. This date was the day before Spar Nord Bank took possession of a 27% ownership in Danske Andelskassers Bank. The overall price value of the offer to Danske is about 1.13 billion kroner.
The price offer could increase if Spar Nord Bank were allowed to conduct due diligence. This would stipulate that this procedure would not pose any threat to the financial statements of Danske Andelskassers Bank.
Spar Nord Bank is planning to begin due diligence directly after the offer is made public as a condition for the offer being completed. The offer would be released in at least four weeks.
The financial adviser to Spar Nord Bank is Carnegie Investment Bank, and the bank’s legal advisor is Accura Advokatpartnerselskab.
Spar Nord Bank is among the five biggest retail banks that are located in the nation of Denmark, and their customer bank numbers over 400,000. The bank has 50 branches, and they strive to provide active involvement and personal advice that is paired with the most recent digital technology. Spar Nord Bank aims at the personal banking market that provides the ideal type of service for a digital world. The bank finds an advantage through innovation and partnership with FinTech organizations to enable them to provide first-rate digital services to its customers.
Spar Nord Bank offers venture capital with an open banking system that gives customers greater capabilities through its API platform, knowledge, banking license and a prominent financial institution that is capable of fueling an entrepreneur’s success.
