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Glitnir (ICE:GLB) Sparebank 1- banks acquire all shares in Glitnir Bank ASA at a price of NOK 300 million. The bank will for the time being keep its current structure and have its headquarters in Trondheim.
The new owners of Glitnir Bank ASA are SpareBank 1 SMN (25 per cent), SpareBank 1 SR-Bank (20 per cent), SpareBank 1 Nord-Norge (20 per cent), 16 other co-operating savings banks (20 per cent) and Sparebanken Hedmark (15 per cent). These banks also own the SpareBank 1 Group.
Glitnir Bank has business units in Trondheim, Oslo, Ålesund and Fosnavåg. The bank has 160 employees and a total loan portfolio of NOK 47 billion. The subsidiary Glitnir Factoring with 26 employees is also included in the transaction.
- The SpareBank 1 banks have the strength and the solidity required to carry out a transaction like this without any additional capital, says Managing Director Finn Haugan in SpareBank 1 SMN on behalf of the new owners of Glitnir Bank.
Well managed Glitnir Bank is based on two former banks BNbank in Trondheim and KredittBanken in Ålesund, which merged in March 2008.
- We know both these predecessors as well managed banks with an interesting customer portfolio. The employees of Glitnir Bank ASA have solid expertise within business areas that complement those in SpareBank 1, particularly within the shipping and offshore sectors, and also within the commercial real estate sector, says Mr. Haugan.
- The acquisition of Glitnir Bank gives SpareBank 1 a stronger foothold in Oslo. 60 per cent of Glitnir Bank's loan portfolio is provided to clients in and around the capital. Simultaneously the position of SpareBank 1 in Ålesund and the northwestern region of Norway will be further strengthened, Mr. Haugan adds.
Solid owner Glitnir Bank applied for and received a financing guarantee from the Norwegian Banks' Guarantee Fund on 8 October this year. The main purpose of the liquidity support provided was to facilitate a structural solution for Glitnir Bank.
- Given the current conditions we had to concentrate our efforts on securing the best possible solution for our customers and our skilled employees, and we have succeeded at that. Glitnir Bank will now have a strong owner with the strength to develop the business and the customer relationships even further, says Morten Bjørnsen, Managing Director of Glitnir Bank ASA.
Glitnir Bank's subsidiaries Glitnir Privatøkonomi and Glitnir Eiendomsfinans have been sold to representatives of their respective management teams.
The transaction is subject to licences. Applications will be submitted shortly. The conditions for the execution of the transaction are expected to be presented by 30 November 2008. Advisors to the SpareBank 1 banks have been First Securities and SpareBank 1 SMN Markets. Artic Securities has been the advisor for Glitnir Bank ASA.
Press briefing: at 10 am today, SpareBank 1 SMN, Vestre Rosten 77, Trondheim
For further information, please contact: MD of Corporate Communication Bjørn Richard Johansen, Glitnir Bank, tel. + 47 - 47 800 100 or Communication Director Hans Tronstad, SpareBank 1 SMN, tel. +47 941 78 322
About SpareBank 1: SpareBank 1 is an alliance consisting of 21 banks with 352 offices in all counties in Norway. The SpareBank 1 savings banks are individual finance companies and full-range suppliers of financial products and services, primary within retail banking and the SME corporate market. The SpareBank 1 alliance had total portfolio of approx. NOK 474 billion at year-end 2007. The alliance has approx. 5450 employees. For further information, please visit www.smn.no
About Glitnir Bank ASA: Glitnir Bank ASA is a Norwegian, which was established subsequent to the acquisition of BNbank and KredittBanken in 2004. Glitnir Bank ASA has been a subsidiary of the Nordic financial group Glitnir banki hf., which recently was put under public administration by the Icelandic Government. Glitnir Bank ASA has a total of 160 employees and headquarters in Trondheim, and offices in Ålesund, Fosnavåg and Oslo. For further information, please visit www.glitnir.no
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