Sydbank A/S (CPSE:SYDB) agreed to acquire Alm. Brand Bank A/S from Alm. Brand A/S (CPSE:ALMB) for DKK 1.8 billion on October 1, 2020.

Under the terms of the transaction, consideration is involving the payment of the value of the equity at the date of acquisition deducting intellectual property rights and adding DKK 25 million. The cash purchase price cannot be finally calculated until the date of acquisition. The provisionally calculated purchase price totals DKK 1.833 billion, equal to 95% of book equity.

The acquisition includes approximately 55,000 NemKonto (Easy Account) customers, bank loans and advances totaling DKK 4.8 billion and arranged Totalkredit mortgage loans representing DKK 16.9 billion and it will make Sydbank the largest distributor of Totalkredit mortgage loans. Brand Bank and consequently take over all the bank's employees and the bank's customers. Transaction is subject to approval of Danish Financial Supervisory Authority and Danish Competition and Consumer Authority.

Transaction is expected to close on November 30, 2020. As of October 30, 2020, the transaction is approved by Danish Financial Supervisory Authority and Danish Competition and Consumer Authority and transaction is expected to be completed as soon as possible and no later than end of November 2020. Mads Kjellerup Dambæk, Brian Bundgaard, Tue Rønholt Hansen, Christina Heiberg-Grevy, Poul Erik Lytken, Kenny Michael Andersen, Nikolaj Grønvald Hansen and Julius Sander of Accura acted as legal advisors to Alm.

Brand.