Finnish Sampo Bank Group to be sold to Danish Danske Bank for EUR 4.05 billion

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Sampo plc announced on Thursday that it is selling all of its banking operations to the Danish Danske Bank A/S. The sale price for the Sampo Bank Group is EUR 4.05 billion.
      In the future, Sampo will concentrate on insurance. The most important part of its insurance operations is the accident insurance company If.
      Sampo will take a sales profit of EUR 2.9 billion on the deal. Before the sale is finalised, Sampo will withdraw a dividend of EUR 25 million from Sampo Bank.
      The move will boost the capital of Sampo plc from EUR 4.6 billion to EUR 7.5 billion.
     
Sampo Bank will continue operations under its present name, and the companies insist that the change of ownership will not have any effect on the bank’s present customer relations. The bank will continue to sell Sampo insurance even under the new Danish ownership.
      Sampo plc is the leading insurance company in the Nordic Countries, bringing in EUR 3.5 billion in premiums for accident insurance, and EUR 600 million in life insurance.
      Mika Ihamuotila, President and CEO of Sampo Bank plc, will continue in his current post until the closing date of the sale, after which he will join Sampo plc as a member of the Group Executive Board.
     
Before final approval, the deal will require permission from competition authorities. Approval is expected early next year.
      The Finnish state is the largest single owner of Sampo plc, with a 14 percent holding.
     
Sampo released its third quarter result today, totalling EUR 464 million, up from EUR 374 in the same period last year.
      In July-September Sampo saw a growth in revenue from accident insurance, interest income, as well as banking and investment services. Earings from life insurance decreased, however.


Links:
  Sampo press release: 9.11.2006 Sampo plc to sell the Sampo Bank Group to Danske Bank A/S

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