Carnegie sold by Sweden’s debt office

Carnegie sold by Sweden's debt office
Sweden’s National Debt Office (Riksgälden) has agreed to sell the Carnegie investment bank for a total of 2.28 billion kronor ($276 million), the agency announced on Wednesday.

Both Carnegie Investment Bank AB and Max Matthiessen Holding AB will be sold to Altor Fund III, a private equity fund and Bure Equity AB investment company.

The sale price also includes the amortization of the Debt Office’s loan to Carnegie made prior to the agency’s takeover of the troubled investment bank back in November 2008.

Carnegie, the company’s investment banking arm, fetched 1.4 billion kronor. The Debt Office will also add at least another 250 million kronor to its proceeds from the sale through an agreement to receive a share of future repayments of certain credits held by Carnegie.

Max Matthiessen, Carnegie’s insurance brokerage operation, was sold for 500 million kronor.

“This is a good outcome for the Swedish state, the companies involved, and the buyers,” Debt Office head Bo Lundgren said in a statement.

“It will secure the companies’ operations and it is likely to hold the taxpayers harmless. The alternative – not to have acted – would have led to liquidation and a likely bankruptcy with significant costs to society and taxpayers. We believe that Altor and Bure are good new owners of the companies.

The Debt Office said it received offers from 20 bidders for Carnegie and 30 for Max Matthiessen.

It expects the transactions with Altor and Bure to be completed within three months.