Nordea to aquire parts of ailing Danish bank
AFP/The Local · 29 Sep 2008, 10:40
Published: 29 Sep 2008 10:40 GMT+02:00
Two regional Danish lenders, Arbejdernes Landsbank and Spar Nord Bank, will purchase the remainder of Roskilde.
The bank was bailed out by the central bank in August after losing some 5.1 billion Danish kroner ($979 million) in the first half of the year following larger than expected write-downs on its real estate loans.
On August 24, the central bank announced that it and a group of Scandinavian financial institutions had bought all of Roskilde's assets and taken over all debt and other liabilities, which it placed in a separate entity.
Nordea will now take over nine Roskilde branches, and some 48,000 customers, for 57 million euros, the target company said in a statement to the stock exchange.
Spar Nord Bank will meanwhile take over seven branches, and Arbejdernes Landsbank will take over five.
The three lenders will guarantee Roskilde loans worth 10 billion kroner, of which Nordea's share will be 5.5 billion, and five billion kroner worth of deposits.