As informed by Nykredit on 6 March 2008 the financial institutions behind
Totalkredit have been offered a new and wider cooperation agreement, which
builds on the agreement from 2003 that was signed when Nykredit purchased
Totalkredit. The offer is, nevertheless, contingent on a sufficient number of
financial institutions entering into the new agreement.
SPARBANK has decided to back the new terms of reference.
Already within the present financial year, the changed terms of reference will
affect SPARBANK's income statement cf. below.
Approval of deferred payment offered will result in capital gain for SPARBANK
The original purchase agreement from 2003 contained a deferred adjustment of
Nykredit's purchase price for Totalkredit, which was dependent on Totalkredit's
market share as at 1 April 2010. However, diversification will complicate a
precise calculation of Totalkredit's market share in 2010. Therefore, Nykredit
is already now offering financial institutions to set the market share at 35 %
as at 1 April 2010. This results in at total tax-exempt deferred payment to the
financial institutions of DKK 1,460m. As originally agreed, the actual payment
will be effectuated 1 October 2012 and will be distributed among the financial
institutions according to their ownership shares in Totalkredit at the sale of
the company in 2003.
Although the payment is not due until 2012, the financial institutions must -
if the offer is accepted - recognise the present value of the future payments
as a capital gain in their income statement. For SPARBANK the additional
payment will result in a capital gain of approximately DKK 41m, which in Q1
2008 will increase profits after tax by approximately DKK 31m.
Further information:
Henning Hürdum
Managing director
T 96 16 16 16
