Sweden’s Handelsbanken has decided to sell a portion of its Finnish operations to three local firms for EUR1.3bn ($1.43bn), which is equal to the net assets of the businesses being sold.
The transaction involves deposit volumes of approximately EUR2.8bn and lending volumes of approximately EUR4.1bn (based on levels as of March 2023), with a risk-weighted exposure of around EUR1.3bn.
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In the bank’s operations in Finland, the transaction accounts for about 30% of the lending volume and 50% of the risk-weighted exposure amounts.
The bank is still continuing a different procedure to dispose of its remaining operations in Finland.
Handelsbanken will receive a cash consideration equivalent to the actual net asset value (roughly EUR1,300m as of Q1 2023) plus a maximum premium sum of EUR8.5m on the exchange date.
The value of the assets on the transfer date will be reduced by the corresponding amounts to reflect the responsibilities assumed by the buyers, which are primarily made up of public deposits.
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By GlobalDataAccording to Handelsbanken, the activities for small and medium-sized enterprises were sold to Oma Savings Bank, the activities for private clients, asset management, and investment services were sold to S-Bank, and the activities for life insurance were sold to Fennia.
Net non-recurring financial effects are only expected to marginally affect the Group’s operational earnings.
The relevant trade unions have been informed, and the sales are subject to usual approvals by governmental authorities.
The deal is scheduled for completion in the second half of 2024.
Earlier this year, Handelsbanken Wealth & Asset Management welcomed Richard Charnock.
Charnock brings considerable wealth and savings sector experience to the role, having held top positions at abrdn, Standard Life, and Lloyds Bank.
Handelsbanken Wealth & Asset Management provides a comprehensive variety of wealth and investment management services to private consumers, charities, and corporate entities within the United Kingdom.
