Nordea Sells Stake in Danish Life-and-Pensions Business for EUR472 Million

By Dominic Chopping Features Dow Jones Newswires

Nordea Bank AB (NDA.SK) has agreed to sell a 45% stake in its Danish life-and-pensions business for 472 million euros ($560 million), it said Thursday.

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The stake is being sold to Foreningen Norliv, an association that represents Nordea Liv & Pension policyholders, and the deal follows last year's agreement when a 25% stake was sold to Foreningen Norliv. Nordea's remaining 30% stake will be sold to Foreningen Norliv in the coming years, it added.

"Norliv's offer is the natural next step after the purchase of a minority stake last year and the legacy of customer ownership in the Danish pensions market," said Nordea Life Holding Chief Executive Gustaf Unger. "The co-ownership has been very successful and it has paved the way for Norliv taking over the majority stake."

The deal will generate a post-tax capital gain of EUR172 million for Nordea while the remaining 30% holding will be remeasured to fair value and is expected to lead to an additional post-tax gain of EUR115 million.

Due to Foreningen Norliv's majority holding, Nordea Liv & Pension will be renamed during 2018.

Nordea Life & Pensions companies in Sweden, Finland and Norway are unaffected by the deal, it said.

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Completion of the transaction is expected during the first quarter of 2018, subject to Danish FSA and antitrust approval.

Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @domchopping @WSJNordics

(END) Dow Jones Newswires

December 21, 2017 04:13 ET (09:13 GMT)