Announcement no. 28-2010
3. September 2010
Company announcement
Amagerbanken concludes agreement with the Danish state concerning renouncement
of the bank's obligation to convert the government hybrid core capital in
certain instances
Supplement to prospectus dated 17 August 2010
The bank's agreement with the Ministry for Economic and Business Affairs on
behalf of the Danish state.
Amagerbanken and the Danish Ministry for Economic and Business Affairs on behalf
of the Danish state have today concluded an agreement concerning the amendment
of certain terms and conditions for the government injection of hybrid core
capital. The agreement entails the renouncement of the bank's obligation to
convert the government hybrid core capital in certain instances.
The agreement is motivated by the following considerations: As described in the
prospectus, the bank would after completion of the capital increase have gained
a certain robustness against additional impairment charges before it would be
obliged to effect a conversion of the government capital injection in whole or
in part into share capital. In relation to existing shareholders and the
investors subscribing for new shares in the rights offering, the bank has found
it appropriate to increase this robustness significantly; an objective which
will be achieved by this agreement. This will reduce the risk of subsequent
dilution of the shareholders as a result of a conversion of the government
capital injection in whole or in part.
According to the original agreement between Amagerbanken and the Danish Ministry
for Economic and Business Affairs on behalf of the Danish state on government
capital injection of hybrid core capital in the total amount of DKK 1,106m, the
bank was obliged to convert the government capital injection in whole or in part
if the bank's initial hybrid core capital ratio (as defined in the loan
agreement) exceeded 50 in order to reduce the initial hybrid core capital ratio
to 35 or less.
As a result of the new agreement with the Danish Ministry for Economic and
Business Affairs on behalf of the Danish state, the bank is no longer under an
obligation to effect such conversion of the government capital injection in
whole or in part into share capital.
However, the bank will still be entitled to effect such conversion and it will
still be under an obligation to convert that part of the government capital
injection which has been issued subject to mandatory conversion if so directed
by the Financial Supervisory Authority in the event of the bank's inability to
fulfil the solvency requirement applying to it or if the Financial Supervisory
Authority finds that there is an imminent risk thereof. These terms are
unchanged compared to the original terms agreed.
dilution of the shareholders as a result of a conversion of the government
capital injection in whole or in part.
Supplement to the prospectus
The bank will publish a supplement to the bank's prospectus dated 17 August 2010
in a separate announcement. The supplement describes the changes to the
prospectus in consequence of the above.
Yours faithfully
A M A G E R B A N K E N
N.E. Nielsen Jørgen Brændstrup
For further information, please contact Mr N.E. Nielsen or Mr Jørgen Brændstrup
via Ms Anne Mikkelsen (co-ordinator) at tel. +45 32 66 64 03.
www.amagerbanken.dk
Amagerbanken agrees renouncement of its obligation til convert goverment hybrid capital in certain instances
| Source: Amagerbanken A/S
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