Vestjysk Bank A/S (CPSE:VJBA) signed a merger agreement to acquire Den Jyske Sparekasse A/S (CPSE:DJS) from Finansiel Stabilitet A/S, A/S Arbejdernes Landsbank, AP Pension Livsforsikringsaktieselskab, Nykredit Realkredit A/S and others for DKK 1.2 billion on November 26, 2020. As part of the consideration for the transaction, Vestjysk will pay a cash consideration of DKK 28.17 per share and will issue 34 Vestjysk shares per Den Jyske Sparekasse share. In connection with the implementation of the merger, new shares in Vestjysk Bank A/S will be issued and sought admitted to trading and official listing on Nasdaq Copenhagen. All assets and liabilities of Den Jyske Sparekasse will be transferred to Vestjysk Bank. Upon completion, Vestjysk Bank will be the surviving bank and will continue under the name and logo of Vestjysk Bank. 

Jan Ulsø Madsen will become Chief Executive Officer of the surviving bank and that Claus E. Petersen will become Deputy Chief Executive Officer. Moreover, the Executive Board will consist of Managing Directors Michael N. Petersen and Torben Sørensen. The merged entity is planned to be headquartered in the Municipality of Herning. The Board of Directors upon completion of the transaction will consist of Kim Duus as Chairman, Niels Fessel as Vice Chariman, Lars Langhoff, Jan Nordstrøm, Lars Holst, Bent Simonsen, Claus Jensen, Bolette van Ingen Bro, Hanne Træholt Odegaard, and Jacob Møllegaard, Mette Holmegaard Nielsen, Karsten Westergaard, and og Sten Louie as Employee Representatives.

The transaction is subject to the approval of the shareholders of both banks as well as the approval of the Danish Financial Supervisory Authority and the Danish Competition and Consumer Authority. The deal received advance undertakings representing 66.1% of the share capital in Vestjysk Bank and 54.9% of the share capital in Den Jyske Sparekasse have been obtained subject to the satisfaction of certain conditions from shareholders. The deal was unanimously recommended by the Board of Directors of Vestjysk and Den Jyske Sparekasse. It is recommended that the merger be adopted at extraordinary general meetings of both banks on January 13, 2021. As of December 11, 2020, transaction has been approved by the Danish Competition and Consumer Authority. As of January 13, 2021, the transaction was approved by Vestjysk Bank shareholders at general meeting. As of January 14, 2021, the transaction was approved by the Danish Financial Supervisory Authority and at the general meeting of Den Jyske Sparekasse shareholders. Hence, all conditions of the merger are met. The transaction is expected to close on January 15, 2021. As of January 14, 2021, the transaction is expected to be processed by January 18, 2021. As a result of the merger, significant synergies and a larger scale will be obtained.

Mads Kjellerup Dambæk, Anne Zeuthen Løkkegaard, Andreas Steen Vallentin-Hansen, Christina Heiberg-Grevy, Nicolai Hesgaard, Poul Erik Lytken, Tue Rønholt Hansen, Mikkel Hanskov, Katrine Agertoft, Signe Seerup Møller, and Mads Agger of Accura Advokatpartnerselskab acted as legal advisors to Vestjysk Bank A/S. ATRIUM Partners A/S acted as financial advisor to Den Jyske Sparekasse A/S. Kromann Reumert acted as legal advisor to Nykredit Realkredit A/S.

Vestjysk Bank A/S (CPSE:VJBA) completed the acquisition of Den Jyske Sparekasse A/S (CPSE:DJS) from Finansiel Stabilitet A/S, A/S Arbejdernes Landsbank, AP Pension Livsforsikringsaktieselskab, Nykredit Realkredit A/S and others on January 14, 2021.