Kvinnherad Sparebank to merge with SpareBank 1 SR-Bank
(Thomson Reuters ONE) -
The Boards of Directors of SpareBank 1 SR-Bank and Kvinnherad Sparebank
(SpareBank 1 Stord-Kvinnherad-Odda) propose a merger of the two banks. The
Boards of Trustees and Supervisory Boards of the two banks will deal with the
proposal on 28 June.
The banks are joining forces to strengthen efforts in Sunnhordland and Odda when
Kvinnherad Sparebank becomes part of SpareBank 1 SR-Bank. The agreement implies
that SpareBank 1 SR-Bank takes over all assets, liabilities and employees of
Kvinnherad Sparebank. Kvinnherad Sparebank will be converted into a savings bank
foundation. Its object will be contribute to the development of the local
communities in Sunnhordland and Odda through financial contributions that are
beneficial to the general public and to be a long-term and stable owner of
Sparebank 1 SR-Bank's equity capital certificates.
A good platform for further concentration on Hordaland
"We believe that this is a good solution for the bank, our customers and the
local communities of Kvinnherad, Odda and Stord, and for the region as a whole.
SpareBank 1 SR-Bank holds a strong position in its market areas and is an
important player for the retail market and the corporate market alike. These are
qualities that the bank will be able to exploit and strengthen further when we
merge to become an even more powerful player in Hordaland", says Åsmund Kåre
Rørvik, Chief Executive Officer of Kvinnherad Sparebank .
Kvinnherad Sparebank is a well run bank with a good deposit-to-loan and core
capital ratios, 66% and 12.9% respectively at 31 December 2009. The bank's
total equity is approximately NOK 4.3 billion. The bank enjoys a strong market
position in Sunnhordland and Odda in both the retail and the corporate market.
It has a sound lending portfolio, mainly loans to the retail market. These
account for 75% of the bank's gross lending.
" Kvinnherad Sparebank, with its many important customers and good market
position in Sunnhordland and Odda, is very interesting for SpareBank 1 SR-Bank.
For us, this will further strengthening our efforts in Hordaland", says Terje
Vareberg, SpareBank 1 SR-Bank's Chief Executive.
"We established ourselves in Hordaland by opening an office in Bergen four years
ago. During this short period, we have gained a good footing in Hordaland with
almost five thousand customers, fifty employees and three offices. This merger
implies a continuation of Kvinnherad Sparebanks existing offices and will
further strengthen the group's distribution capabilities and provide a basis for
a strong commitment in both the retail and the corporate markets in Sunnhordland
and Odda. There will be no jobs lost as a result of the merger", Vareberg
continues.
Constructive negotiations, good result
A proposal will be presented to the banks' Boards of Trustees and Supervisory
Boards under which SpareBank 1 SR-Bank pays NOK 348 million for the takeover of
SpareBank 1 Kvinnherad by SpareBank 1 Stiftinga Kvinnherad (SpareBank 1
Foundation Kvinnherad). Settlement will take place by SpareBank 1 SR-Bank
issuing equity capital certificates by way of a private placement for an amount
equal to NOK 348 million. The issue price is set at the market price on the
takeover date; however no lower than the already set minimum price, namely NOK
53.43637 per equity capital certificate.
To strengthen public benefit measures in the new market area, SpareBank 1
SR-Bank will make a bequest to SpareBank 1 Stiftinga Kvinnherad of NOK 20
million.
In addition, SpareBank 1 SR-Bank establishes a business trust (foundation) in
Sunnhordland and Odda. SpareBank 1 SR-Bank has previously established five
similar business development foundations in its market area.
Beneficial for customers, employees and the local communities
The object of the merger is to improve the competitive position by raising the
level of competence and providing a broader range of products and services in
Sunnhordland. This will be beneficial for customers, employees, equity capital
certificate holders and the public in general.
"We stress the need for good integration plans, so that the process through to
the final merger is as positive as possible. Following the merger, customers and
employees will continue to experience the same close bank relations they enjoyed
earlier. It is important for us that decision-making powers and authorities are
held where knowledge of the customer is best, and this is absolutely in line
with our vision", concludes Åsmund Kåre Rørvik.
Any final agreement is subject to the approval of the public authorities.
Further comments:
Chief Executive Officer in Sparebank 1 SR-Bank,Terje Vareberg, phone +
47 911 00448
Chief Executive Officer in Kvinnherad Sparebank, Åsmund Kåre Rørvik, phone +
47 930 44044
Executive VP Communication in SpareBank 1 SR-Bank, Thor-Christian Haugland,
phone + 47 480 31633
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1419001]
Unternehmensinformation / Kurzprofil:
Datum: 26.05.2010 - 18:16 Uhr
Sprache: Deutsch
News-ID 21504
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