SpareBank 1 SMN Markets in Trondheim will be fully integrated in SpareBank 1 Markets as a result of a merger.
SpareBank 1 SMN will integrate its markets operation into SpareBank 1 Markets. The settlement will be in SpareBank 1 Markets shares. Consequently, SpareBank 1 SMN will become the principal shareholder in the combined company.
Following the merger and a planned equity issue of MNOK 65 in September 2014, the ownership structure in SpareBank 1 Markets will be as follows:
SpareBank 1 SMN: 73.3 % (previously 27.0 %)
SpareBank 1 Nord-Norge: 10.0 % (27.0 %)
SamSpar: 10.0 % (27.0 %)
Sparebanken Hedmark: 6.1 % (16.6 %)
Other shareholders: 0.6 % (2.2%)
The operations of the two companies will primarily continue as-is, with 70 employees in Oslo and 40 employees in Trondheim. The merged company will be led by Stein Husby. The business area 'Foreign Exchange and Derivatives', as well as certain supporting functions, will be located in Trondheim.
Profitable at current combined income level
- A comprehensive restructuring of SpareBank 1 Markets has already taken place. Yearly costs have been reduced to half the level of 2012 and 2013 respectively, and adaptations to the business model will reduce market risk. In addition, guaranteed bonuses have been abolished. We have created a good foundation for a profitable markets operation, and all the owner banks support the company going forward, says the current Chairman of the Board in SpareBank 1 Markets, Jan-Frode Janson.
Finn Haugan, CEO of SpareBank 1 SMN, will be appointed Chairman of the Board in SpareBank 1 Markets.
- The merged company will be profitable based on current combined income level. Fully integrated with the markets operation of SpareBank 1 SMN, SpareBank 1 Markets will increase its capacity and increase its spectre of services. Creating a solid and profitable markets operation is long-term goal, backed by solid owners. Current co-operation with the owner banks will continue, with an increased emphasis on delivering on business potential, says Haugan.
In September 2014, an equity issue of MNOK 65 in SpareBank 1 Markets will be completed. The issue is a part of an already planned recapitalisation of the company, independent of the merger.
SpareBank 1 Markets recorded a loss of MNOK 69 as of 2Q14. Restructuring costs constitute MNOK 40 of the loss, whilst trading losses constitute MNOK 17.
The transaction is expected to be completed within 4th quarter of 2014, subject to regulatory approval and final Board approvals.
Oslo, 11 August 2014
Contact persons:
Stein Husby, CEO, SpareBank 1 Markets, tel.: +47 414 02 591
Finn Haugan, future Chairman of the Board, SpareBank 1 Markets, tel.: +47 900 41 002
Kjell Fordal, CFO, SpareBank 1 SMN, tel.: +47 905 41 672
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)