BankNordik cancels the planned acquisition of the Faroese life insurance company Føroya Lívstrygging (“Lív”). The move follows the Bank’s announcement early January of a postponement of the acquisition, pending continued adjustments of the company structure.
In May 2011 BankNordik announced an agreement with the seller, the Faroese government, of acquiring 50% of the share capital in Lív for DKK 35 million. The transaction was conditioned upon the approval from the Faroese insurance and competition authorities, various changes to the company structure and the company’s compliance with all regulatory requirements.
The agreement with the seller stipulated a finalization of the acquisition by year-end 2011. But in the period since the agreement in May 2011 the conditions for life insurance and pension savings have changed drastically. This led to a postponement of the transaction to 1 July 2012. In the mean time all the relevant parties were to agree upon the requirements to be fulfilled for the transaction to be finalized. It has not been possible for the parties to agree upon the relevant requirements.
BankNordik has therefore made an agreement with the seller to cancel the transaction. The Faroese government therefore continues as the only shareholder in Føroya Lívstrygging.
BankNordik continues to strengthen and develop the bank’s current pension savings solutions to meet customers’ demands.
Additional information
Janus Petersen, CEO, phone (+298) 230 340
Árni Ellefsen, CFO, phone (+298) 230 348
Investor Relations: ir@banknordik.fo
BankNordik was founded over 100 years ago in the Faroe Islands. The Group has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands and Iceland. The Group has 180,000 customers, total assets of DKK 17 billion and 600 employees. The Bank is subject to the Danish Financial Services Authority and is listed on NASDAQ OMX. www.banknordik.fo