Insurance companies pay DKK5bn for Danish FIH Erhvervsbank

20 September 2010 - A consortium of insurance firms agreed yesterday to acquire the shares held by bankrupt Icelandic bank Kaupthing Bank, or 99.89%, in Danish bank FIH Erhvervsbank A/S for DKK5bn.

Iceland's central bank, Sedlabanki Islands, controls Kaupthing's shares in FIH Erhvervsbank as a security for a EUR500m loan given to Kaupthing in October 2008.

The acquiring company comprises Danish pension fund ATP, which will have 49.95% in FIH, Danish pension insurance company PFA and Swedish insurer Folksam with 19.98% each, and entity CPDyvig -- with 9.99%. FIH employees own the remaining 0.11%.

The purchase price consists of a cash payment of DKK1.9bn and an earn-out payment of up to DKK3.1bn, adjusted for actual losses incurred by FIH until 31 December 2014 and for FIH's potential gain on its holding in the Axcel III fund. An additional earn-out payment is dependent on the consortium's realised gain on its investment in FIH at latest on 31 December 2015.

Completion of the transaction is subject to regulatory approvals.

(EUR1 = DKK7.4; EUR1 = USD1.3)

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