The Norwegian main bank DnB NOR is to acquire 100% of its Baltic Subsidiary DnB NORD, the Norwegian bank says in a short statement.
Since 2005, DnB NOR Bank ASA (DnB NOR) and Norddeutsche Landesbank Girozentrale (NORD/LB) have owned 51 per cent and 49 per cent, respectively, of Bank DnB NORD A/S. Bank DnB NORD A/S has subsidiary banks in Latvia, Lithuania and Poland. Today DnB NOR have decided to take over the whole Baltic bank.
“In a statement to Oslo Børs on 14 July 2010, it was announced that DnB NOR, pursuant to the shareholder agreement, had notified NORD/LB that the bank reserved the right to exercise its option to acquire NORD/LB’s 49 per cent ownership interest in Bank DnB NORD A/S,” DnB NOR says in a short market statement.
“In a statement to NORD/LB today, DnB NOR has exercised its option to acquire NORD/LB’s ownership interest in Bank DnB NORD A/S.”
“If the parties do not reach agreement on price, this must be determined in accordance with an agreed arbitration mechanism.”
“DnB NOR considers DnB NORD’s geographic area of operation to be a region with a good future earnings potential, and that this is a good time to strengthen its position in the Baltic region.”
DnB NOR share price up more than 50% over the last 12 months:
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