Sweden’s Nordax Bank offered an improved bid on Wednesday to buy Oslo-listed Norwegian Finans Holding (NFH), the owner of Bank Norwegian, in a cash transaction valued at 19.6 billion Norwegian crowns ($2.23 billion).
Nordax offered to pay 105 crowns per share, up from a previous bid of 100 crowns per share, representing a premium of 37.2% to the closing price of the NFH shares on March 3, a day before the initial offer was launch, and adjusted for NFH dividend, the Swedish firm said.
“Nordax strongly believes that a combination will create a unique platform for continued expansion, in existing as well as new markets,” it said.
Bank Norwegian is an online bank launched in 2007 by Norwegian Air Shuttle co-founder Bjoern Kjos, focusing primarily on consumer loans, credit cards and savings accounts.
The combined firm would have around two million customers and overall lending of 65 billion Swedish crowns ($7.52 billion), Nordax added.
If successful, the joint company would seek to expand into new European markets with a goal of becoming a leading pan-European niche bank, it added.
Nordax said it was seeking a minimum acceptance level of 90%, but could also agree ending with at least two-thirds of the shares in NFH.
“While the objective of Nordax is to acquire Bank Norwegian in full, Nordax also sees substantial merit in becoming a majority shareholder,” Nordax said.
The company has so far secured backing from Nordic Capital Fund IX3 and Sampo, which hold a combined stake of 22.7% in NFH.
Nordax said it expected to complete the offer in the second half of this year, pending regulatory approvals.
Source: Reuters.com