By Dominic Chopping

STOCKHOLM--Svenska Handelsbanken AB said Wednesday that the conditions for the previously announced deal to sell its Danish operations to Jyske Bank AS have been met, with the assets to be transferred on Thursday.

On the transfer date, the present value of the assets reduced by the liabilities assumed by Jyske Bank will be calculated and the remaining amount will be paid in cash, plus a premium of 3 billion Danish kroner ($416.7 million), it said.

Handelsbanken said the transferred assets primarily consist of loans to private and corporate customers, amounting to SEK105 billion as of Oct. 31 this year. The transferred liabilities primarily consist of deposits from the public, amounting to SEK61 billion as of the same date.

The final settlement will be carried out after compilation of the balances as of Nov. 30.

Handelsbanken said that overall, non-recurring effects linked to the transaction, including dissolution of goodwill amounting to SEK2.7 billion, are expected to have a relatively neutral impact on the group's operating profit.

The deal is expected to increase Handelsbanken's common equity tier 1 capital by around SEK2.5 billion and reduce its risk-weighted exposure amount by around SEK25 billion.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 30, 2022 05:48 ET (10:48 GMT)

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