Handelsbanken to Complete Danish Operations Sale on Thursday
November 30 2022 - 06:03AM
Dow Jones News
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 firstname.lastname@example.org
(END) Dow Jones Newswires
November 30, 2022 05:48 ET (10:48 GMT)
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