To Nasdaq Copenhagen
11 April 2019
Nykredit enters into conditional agreement to buy LR Realkredit
Nykredit Realkredit A/S has entered into a conditional agreement with the owners of LR Realkredit A/S to acquire all shares in the company. The agreement is subject to authority approvals.
At end-2018 LR Realkredit's lending amounted to DKK 21.7 billion, equivalent to less than 2% of the Nykredit Group's total mortgage lending of just under DKK 1,200 billion. LR Realkredit has less than 10 employees (FTE).
Nykredit will pay DKK 2.6 billion for LR Realkredit, the equity of which amounts to DKK 3.3 billion. The acquisition will be completed at a price/book value of 0.79, meaning that Nykredit's equity will grow by about DKK 0.7 billion.
David Hellemann, Group Managing Director of Nykredit, says:
"By acquiring LR Realkredit, we increase our equity and grow our lending in areas where Nykredit already has very strong expertise. It was therefore natural for us to enter into constructive negotiations with LR Realkredit when its Board of Directors approached us to learn if we were interested in acquiring the company."
Facts
LR Realkredit is planned to be integrated into Nykredit Realkredit A/S. LR Realkredit will discontinue as an independent company and brand. The company's activities will continue as part of Nykredit.
LR Realkredit provides mortgage loans to finance properties most of which qualify for some sort of public support. The main segments are public housing, properties used for social, cultural or educational purposes and housing cooperatives. Nykredit already possesses strong expertise in these fields, which will benefit LR Realkredit's customers.
Further information:
Questions may be addressed to Nykredit Press Relations, tel +45 44 55 14 50.
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