Upward adjustment of profit expectations for 2019 as a result of the upcoming sale of 75 % of Vestjysk Bank’s shares in Sparinvest Holdings SE
The Danish Financial Supervisory Authority
Nasdaq Copenhagen A/S
28 June 2019
Upward adjustment of profit expectations for 2019 as a result of the upcoming sale of 75 % of Vestjysk Bank’s shares in Sparinvest Holdings SE
Vestjysk Bank adjusts its profit expectations for 2019 upwards by DKK 135 million from the interval DKK 225-275 million to the interval DKK 360-410 million. The upward adjustment is made in the light of the anticipated upcoming sale of 75 % of the shares in Sparinvest Holdings SE (”Sparinvest”).
As announced in company announcement of March 1st, 2019, on 1 March the shareholders of Sparinvest entered into a conditional agreement concerning the sale of 75 % of the shares in Sparinvest. The due diligence process pending at the time has now been completed, just as minor adjustments have been made to the composition of the remuneration of the selling shareholders, and the only conditions remaining to be met are obtaining the necessary public authority approvals from the financial supervisory authority in Luxembourg, CSSF, as well as from the competition authorities. As a result, it now seems that there is such a high degree of certainty of the sale being completed that the profit expectations for 2019 are adjusted upwards.
At present, Vestjysk Bank owns 11.3 % of the shares in Sparinvest, and a sale of 75 % of these shares and a price adjustment of the remaining 25 % of the shares will generate an extraordinary tax-exempt income of approx. DKK 130 million and a taxable extraordinary dividend payment of approx. DKK 5.7 million. This is in addition to the taxable dividend payment of DKK 17.6 million that was paid out to Vestjysk Bank in June 2019.
The sale of the shares will result in an increase of the Vestjysk Bank’s common equity tier 1 capital ratio and total capital ratio by approx. 1.3 percentage points due to the extraordinary income and the dividend payment.
If the public authority approvals are obtained within the expected time frame, the transaction will be completed in Q3 of 2019.
Please address any enquiries regarding the present announcement to Jan Ulsø Madsen, CEO, at tel. .
Vestjysk Bank A/S
Kim Duus Jan Ulsø Madsen
Chairman CEO
Vestjysk Bank A/S
Torvet 4-5
7620 Lemvig
Denmark
Phone
CVR no. 34631328
