The Danish Financial Supervisory Authority
NASDAQ OMX Copenhagen
Oslo Børs
24 September 2013
Vestjysk Bank initiates voluntary conversion of approx. DKK 338 mill. government hybrid core capital
In accordance with the plan announced in the Annual Report 2012, Vestjysk Bank has today decided to initiate a voluntary conversion of a part of Vestjysk Bank's government hybrid core capital.
The conversion will include government hybrid core capital having a principal of approximately DKK 323 mill. including DKK 287.6 mill. obtained by Vestjysk Bank pursuant to agreement of 20 August 2009, and DKK 35.55 mill. obtained by the former Aarhus Lokalbank A/S pursuant to agreement of 22 December 2009. Accrued interests will also be included in the conversion and is expected to amount to approximately DKK 15 mill. assuming the conversion is completed in mid-October 2013 as planned.
The conversion will be effected in accordance with the terms and conditions of the abovementioned agreements. The terms and conditions are included as appendices 1, 2 and 4 of Vestjysk Bank's Articles of Association and can be found on our website, www.vestjyskbank.dk. The conversion of accrued interests will take place pursuant to a separate decision by the Board of Directors to increase the share capital.
The conversion price will be fixed as the market value of bank's shares. The market value will be determined by a valuation expert appointed by FSR - Danish Accountants on the basis of the guidelines set out in the agreements on government hybrid core capital.
The conversion is expected to be completed immediately after the announcement of the valuation report. The valuation report must be made available within three weeks after the conversion notice.
The conversion by itself will result in an improvement of the bank's solvency. Based on the most recent financial figures as per 30 June 2013, the solvency ratio of 11.2 per cent would be increased by approximately 1 percentage points, following which the solvency surplus would amount to DKK 360 mill.
The Danish State’s post-conversion ownership percentage of the bank depends on the conversion price determined by the valuation expert. If the conversion price remains within the range of DKK 10 to DKK 15 per share of nominally DKK 1, the Danish State will together with Finansiel Stabilitet obtain an ownership in Vestjysk Bank of approximately 67 to 71 percent of the share capital and voting rights.
Please direct inquiries regarding this announcement to CEO Vagn Thorsager at (00 45) 96 63 21 03.
Vestjysk Bank A/S
Steen Hemmingsen Vagn Thorsager
Chairman of the Board CEO
Vestjysk Bank A/S
Torvet 4-5
DK-7620 Lemvig
Denmark
Phone +45 96 63 20 00
CVR no. 34631328
www.vestjyskbank.dk
