Handelsbanken sells life insurance arm
AFP - [email protected]
Published: 3 Sep, 2007 CET.
Updated: Mon 3 Sep 2007 12:06 CET
Norway's biggest insurance group Storebrand said Monday it had agreed with Swedish bank Handelsbanken to buy its life insurance and pension unit SPP for €1.9 billion ($2.6 billion) in cash.
"The combination of Storebrand and SPP will create the leading life insurance and pensions provider in the Nordic region," Storebrand said.
To finance the deal, Storebrand said it would issue new shares worth 9.0-10.7 billion Norwegian kroner ($ 1.5-1.8 billion) and make use of a temporary banking loan of 4.6 billion kroner.
The final purchase price would be reduced to €1.7 billion if the Swedish regulators approved a special dividend of €200 million paid by SPP to Handelsbanken prior to the closing of the transaction, Storebrand said.
Comments
See Also
"The combination of Storebrand and SPP will create the leading life insurance and pensions provider in the Nordic region," Storebrand said.
To finance the deal, Storebrand said it would issue new shares worth 9.0-10.7 billion Norwegian kroner ($ 1.5-1.8 billion) and make use of a temporary banking loan of 4.6 billion kroner.
The final purchase price would be reduced to €1.7 billion if the Swedish regulators approved a special dividend of €200 million paid by SPP to Handelsbanken prior to the closing of the transaction, Storebrand said.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.