Skandinaviska Enskilda Banken AB agreed to sell all shares in Danish pension units SEB Pensionsforsikring A/S and SEB Administration A/S to Danica Pension Livsforsikrings A/S for a total consideration of 6.5 billion Danish kroner.
Danica Pension, a unit of Danske Bank A/S, will pay a consideration of 5 billion kroner in cash and a 1.5 billion kroner pre-closing dividend.
The deal includes the sale of a portfolio of life and pensions contracts and approximately 275 employees. SEB said the pension units had 103 billion kroner in AUM as of September-end and contributed net profit of 389 million kroner in the first nine months.
The acquisition will also give Danica Pension approximately 30.8 billion kroner of total premium payments in Denmark, a 19.2% market share, bringing its total AUM to 547 billion kroner.
SEB said the deal will have a limited effect on its financial ratios, with its common equity Tier 1 ratio expected to increase by 0.6 percentage point. The deal also reduces market risk exposure, the group noted, adding that the pension businesses comprised 3% of its income, 2% of costs and 7% of AUM as of September-end.
Regulatory approvals and certain separation preparations are expected in the first half of 2018.
As of Dec. 13, US$1 was equivalent to 6.33 Danish kroner.
