Lokalbanken's company announcement No. 14/2008 15 September 2008
Lokalbanken i Nordsjælland and Handelsbanken join forces
Two well-run banks joining forces to enhance growth and development
The two banks are a perfect match in terms of geography, customer composition,
professional skills and business philosophy
Handelsbanken has submitted a bid of DKK 300 in cash per share
Lokalbanken's Supervisory Board and Committee of Shareholders unanimously
recommend accepting the offer
Lokalbanken and Handelsbanken intend to combine their Danish operations. For
that purpose, Handelsbanken has submitted a tender offer for all shares in
Lokalbanken i Nordsjælland a/s, offering DKK 300 in cash per share of DKK 20
nominal value. The price represents a premium to the shareholders of 135%
relative to the market price on Friday, 12 September 2008.
The Supervisory Board and the Committee of Shareholders of Lokalbanken have
unanimously agreed to recommend that the shareholders of Lokalbanken accept the
tender offer.
“A combination with Handelsbanken is a unique opportunity to strengthen our
position in our local market together with a strong bank sharing our values”,
said Lokalbanken's CEO Bruno Riis-Nielsen.
“This is an opportunity to provide high-level personal services to our customers
and to expand our product range at a greater pace than before. Furthermore, our
shareholders are being offered an attractive price for their shares, and our
employees will be given better career opportunities working for an international
bank,” said Bruno Riis-Nielsen.
Lokalbanken complements Handelsbanken in key areas. For example, Lokalbanken is
strongly positioned in North Zealand, where Handelsbanken is looking to expand
its position.
“Lokalbanken is a well-run bank and basically builds on the same principles as
Handelsbanken. Like us, they have decentralised operations with independent and
dynamic branch managers and a strong local presence,” said Frank Vang-Jensen,
the head of Handelsbanken Danmark.
“Denmark is a very important market for Handelsbanken. We mainly grow
organically, but we always consider opportunities for joining forces with other
well-run banks in Denmark in order to strengthen our position. Its strong
position in North Zealand makes Lokalbanken a perfect match for Handelsbanken,”
said Frank Vang-Jensen.
Handelsbanken will contribute 40 branches and Lokalbanken 14 of the combined
bank's total of 54 branches. Lokalbanken's some 200 employees will join the
Handelsbanken Group's 10,500 employees, of whom about 600 are based in Denmark.
Handelsbanken ranks among the largest banks in the country.
The offer equals a total price for Lokalbanken of DKK 810 million. The offer
period will commence on Monday, 15 September 2008 and close on Monday, 13
October 2008 at 8:00 pm (Copenhagen time). The offer is subject to, among other
things, Handelsbanken becoming the owner of more than 90% of the share capital
and the voting rights in Lokalbanken.
Press conference
A press conference will be held today at noon at Lokalbanken's head office,
Slotsgade 36 in Hillerød. Bruno Riis-Nielsen, CEO, and Erik Uttenthal, Chairman,
will represent Lokalbanken and Frank Vang-Jensen, head of regional bank Denmark,
and Pär Boman, Group Chief Executive, will represent Handelsbanken at the press
conference.
For further information, please contact:
Handelsbanken:
Frank Vang-Jensen, Head of regional bank Denmark and Executive Vice President of
Svenska Handelsbanken AB - tel.: +45 3341 8201
Mikkel Jørnvil Nielsen, Head of Communications - tel.: +45 2630 0497
Lokalbanken:
Erik Uttenthal, Chairman - tel. +45 2029 1514
Bruno Riis-Nielsen, CEO- tel. +45 4840 3600
Customers, shareholders and other interested parties may call to the following
telephone numbers or write to the following e-mail addresses if they have any
queries:
Lokalbanken tel. +45 4840 3230 lokalbanken@lokalbanken.dk
Handelsbanken tel.
+45 3341 8513 info.danmark@handelsbanken.dk
As from noon today, the
telephones will be open weekdays from 9am - 8pm and Saturdays and Sundays from
11am to 2pm.
Lokalbanken's vision is to be the preferred choice for families and local
business operators in North Zealand, while the bank's mission is to be a leader
in the development of the local area on the basis of personal commitment and
professional advisory services. The bank recorded a pre-tax profit of DKK 82m in
2007. At 30 June 2008, the bank had loans and advances totalling DKK 4.0bn and
deposits totalling DKK 3.5bn.
Handelsbanken's goal is to outperform the average profitability of its Nordic
peers. The means of achieving this goal is to have more satisfied customers and
lower costs than other banks. Handelsbanken has consecutively achieved this goal
for the past 36 years. In 2007, the bank reported a pre-tax operating profit of
DKK 11.8bn and generated a return on equity of more than 16% after tax. In 2007,
the bank recorded the highest level of customer satisfaction in the Nordic
region. At 30 June 2008, Handelsbanken Danmark had loans and advances totalling
DKK 32.4bn and deposits totalling DKK 21.3bn.
