STOCKHOLM, Sweden, May 7, 2002 (PRIMEZONE) -- Nordea today signed a conditional share purchase agreement with LG of Korea to purchase 54.3 percent of the shares in the Polish bank LG Petro Bank. Nordea will make a tender offer for all outstanding shares in LG Petro Bank.
LG Petro Bank S.A. is among Poland's 20 largest banks with a customer base of more than 160,000 private individuals and several of Poland's largest corporations. The bank is represented in all major Polish cities via a network of 29 branches and 17 mortgage outlets. LG Petro Bank has 800 employees.
Nordea will launch a tender offer at PLN 21 per share and the total consideration for all outstanding shares will amount to PLN 467m (EUR 128m). The remaining 45.7 percent of the shares are owned by three Polish companies (37.17 percent) and by a number of small shareholders. The purchase agreement with LG of Korea ("LG") is conditional on, among other things, Nordea being able to, under Polish securities legislation, launch a tender offer at PLN 21 per share.
Nordea's current presence in Poland is via Nordea Bank Polska (formerly BWP-Unibank and Bank Komunalny). Nordea intends to merge LG Petro Bank with Nordea Bank Polska as soon as possible. Nordea will after the transaction rank among the 15 largest financial services providers in Poland. The new group will have a total of 50 branches and 17 mortgage outlets, covering all major Polish cities.
"The acquisition of LG Petro Bank is part of the fulfilment of our vision for the Baltic Sea region, giving us both critical mass and further strengthening our nationwide representation in Poland. The acquisition of LG Petro Bank comes at a time when Poland's EU entry is imminent and when the country's economy is set to recover. The transaction creates a solid foundation for Nordea's continued expansion in Poland," said Thorleif Krarup, Group CEO of Nordea.
"We will rapidly integrate LG Petro Bank into Nordea Bank Polska strengthening our position as the leading Nordic bank in Poland, serving Nordic, international and domestic corporations, their employees and other private individuals through a nationwide branch network offering a complete range of locally adapted products. LG Habitat, which is an important player in mortgage lending, will be renamed Nordea Habitat and will continue to supplement the product range with additional banking services," said Thomas Neckmar, Head of Regional Bank Baltic Countries and Poland.
Nordea has also acquired certain guarantees from LG relating to the future performance of LG Petro Bank's credit portfolio and other exposures. Nordea will be able to claim compensation for credit losses within 18 months.
The launch of the tender offer is subject to the following conditions: Polish regulatory approvals and approval from the Swedish Financial Supervisory Authority, the average six months' share price being PLN 21 or lower (according to Polish securities legislation a tender offer must be made at the six months' average share price or higher), that there is no material adverse change in the business of LG Petro Bank, resolving of issues related to trading in certain receivables from the Polish State Treasury and certain other formal conditions. The tender offer will be conditional upon a minimum acceptance of 90 percent. Regulatory approval is expected within four months and it is anticipated that the tender offer could be launched within seven months. According to the agreement all conditions precedent must be fulfilled within seven months and the offer must be launched within eight months.
Nordea expects the investment in LG Petro Bank to yield a positive contribution to earnings within approximately two years.
For further information:
Lars G Nordstrom, Head of Retail Banking, +46 8 614 78 07 Thomas Neckmar, Head of Regional Bank Baltic Countries and Poland, +46 8 614 79 30 Jens Bekke, Media Relations, +45 33 33 39 68
Nordea is the leading financial services group in the Nordic and BalticSea region and operates through four business areas: Retail Banking,Corporate and Institutional Banking, Asset Management & Life, andGeneral Insurance. The Nordea Group has nearly 11 million customers,1,245 bank branches and 125 insurance service centres in 22 countries.The Nordea Group is a world leader in Internet banking, with almost 3million e-customers. The Nordea share is listed in Stockholm, Helsinkiand Copenhagen.
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