Today the boards of directors of Ryslinge Andelskasse and Sparekassen Faaborg have agreed upon Sparekassen Faaborg acquiring Ryslinge Andelskasse conditioned by the approval of the Danish Financial Supervisory Authority.
The acquisition is caused by Ryslinge Andelskasse no longer meeting the solvency requirement according to FBA. As stated in the annual report 2010 Ryslinge Andelskasse has realized demand for extraordinary loan impairment losses – and this has also been a fact in 2011.
The purchase sum of DKK 1,3m implies that the 984 cooperative shareholders of Ryslinge Andelskasse are fully covered. The cooperative shareholders can choose between either cash payment or conversion to shares in Sparekassen Faaborg.
The market segment of Sparekassen Faaborg is expanded in a natural way by the acquisition of Ryslinge Andelskasse. The branch in Ryslinge will continue, and the approx. 2,200 customers are offered more products and advisory services.
When including Ryslinge Andelskasse loans and advances of Sparekassen Faaborg amount to DKK 4,6b, deposits to DKK 4,3b and contingent liabilities to DKK 1,5b. The solvency ratio of Sparekassen Faaborg is not expected to be affected significantly by the acquisition. At the end of first quarter 2011 the group solvency ratio was calculated at 17.7 percent and the parent solvency ratio at 18.3 percent.
Positive synergies are expected in connection with the acquisition, yet of a modest range in 2011 due to purchase costs. For the year 2012 a contribution to the earnings of operating activities is expected amounting to DKK 4-6m.
The 7 employees of Ryslinge Andelskasse are offered jobs in Sparekassen Faaborg. The CEO of Ryslinge Andelskasse retires most recent at the end of 2011. When including Ryslinge Andelskasse Sparekassen Faaborg has 25 branches and 230 employees, who serve approx. 44.000 customers.
Sparekassen Faaborg presents interim report 15 August 2011 and expects positive results.
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For further information please contact
Claus Sejling
CEO
Phone:+ 45 6361 1814
