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

By Dominic ChoppingFeaturesDow 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.

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.

Continue Reading Below

"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.

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

Write to Dominic Chopping at; Twitter: @domchopping @WSJNordics

(END) Dow Jones Newswires

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