SpareBank 1 SMN

M&A Activity • Jun 22, 2022

SpareBank 1 Markets strengthens position in the capital market and acquires greater regional ownership

SpareBank 1 Markets strengthens position in the capital market and acquires greater regional ownership

SpareBank 1 Markets is strengthening its focus on the capital market and is joined by SR-Bank and SpareBank 1 Nord-Norge as major owners. SpareBank 1 SMN will receive a gain of NOK 235 million in connection with the transaction.

SpareBank 1 SR-Bank and SpareBank 1 Nord-Norge are to transfer their markets business to SpareBank 1 Markets and are also buying into the company in the form of a cash payment. After completion of the transaction SpareBank 1 SMN will own 39.4 per cent, SpareBank 1 SR-Bank 33.4 per cent, and SpareBank 1 Nord-Norge 18.1 per cent, as the company’s three largest owners.

The transaction is dependent on approval from the Financial Supervisory Authority and the Competition Authority. A further precondition for the transaction is that an application for tax reduction under Section 11-22 of the Norwegian Tax Act is granted by the Ministry of Finance. In addition, all shareholders in SpareBank 1 Markets must accept a new shareholder agreement.

Assuming the required approvals are given, the transaction will go ahead on 1 January 2023.

Now that the SpareBank 1 banks are joining forces in the capital market area, they will create a larger and more robust markets operation in Oslo, Tromsø, Trondheim and Stavanger.

“This transaction makes SpareBank 1 Markets an even more robust company and provides a clearer regional profile to complement the solid position they have acquired at the national level over recent years,” says Jan-Frode Janson, group CEO at SpareBank 1 SMN.

Under the transaction’s valuations, SpareBank 1 SMN will receive a book gain of NOK 235 million on the bank’s shareholding in SpareBank 1 Markets, but due to accounting treatment the effect on the CET1 ratio will be neutral.

SpareBank 1 Markets will build competence at the local level in order to stay close to its customers. A larger combined organisation will facilitate competence sharing and employee development, along with an overall services value proposition to customers and business development in the market.

“This complementary transaction will contribute to an even more robust and profitable platform for SpareBank 1 Markets. The transaction is expected to make for increased and more diversified revenues, a strengthened organisation through the acquisition of skilled and experienced staff, greater proximity to customers combined with an improved customer offering, strengthened coordination with the SpareBank 1 banks and a highly effective operational platform. In sum the transaction is expected to be positive for customers, employees and owners alike,” says Stein Husby, CEO of SpareBank 1 Markets.

Trondheim, 22 June 2022

Contact:

For investors and analysts: CFO Trond Søraas on +47 922 36 803

For the media: Executive Vice President Rolf Jarle Brøske on +47 911 12 475

The above information is disclosable pursuant to Section 5-12 of the Securities Trading Act.