Mandatum plc, Inside information, 10 March 2025 at 8:00 a.m. EET
Mandatum plc ("Mandatum") has today entered into an agreement to sell all of its shares, amounting to 19.83 per cent, in the Danish investment and trading service provider Saxo Bank A/S ("Saxo Bank") for approximately EUR 319 million. Based on the share sale and purchase agreement, Geely Financials Denmark A/S and Mandatum will sell all their shares (49.88 per cent and 19.83 per cent, respectively) in Saxo Bank to Bank J. Safra Sarasin AG, while the founder and CEO of Saxo Bank, Kim Fournais, will remain as shareholder in Saxo Bank.
"The transaction announced today is in line with our target to exit our non-core assets, Saxo Bank being the largest and most important one. In July 2024, Saxo Bank announced that different strategic options would be explored, and I am very happy with the good outcome of this process. Mandatum's strategic focus will remain on the profitable growth from capital-light business such as institutional and private wealth management", says Patrick Lapveteläinen, Chair of the Board at Mandatum.
Mandatum agreed to acquire its shares in Saxo Bank from Sampo plc for a purchase price of EUR 302 million in connection with the demerger of Sampo in October 2023, and the transaction was completed on 13 May 2024. Since then, Mandatum has received approximately EUR 28 million in dividends from Saxo Bank (EUR 12 million during Q2/2024 and EUR 16 million during Q4/2024). Mandatum's share of the purchase price in the transaction announced today is approximately EUR 319 million. Based on this, Mandatum expects to record a minor pre-tax gain after transaction costs for the first quarter of 2025. The final value and Mandatum's share of the purchase price remains subject to possible downward adjustment, as agreed in the share purchase agreement, the certainty and quantity of which may remain open for an extended period of time. Mandatum expects this adjustment to its share of the purchase price, if materialised, to amount to single digit of millions.
If the transaction would have taken effect as at 31 December 2024, Mandatum's pro forma solvency ratio would have increased from 210 per cent to approximately 242 per cent as at 31 December 2024 due to decreased solvency capital requirement.
The transaction is subject to standard regulatory and other approvals, including from the FINMA (Swiss Financial Market Supervisory Authority) and the DFSA (Danish Financial Supervisory Authority), and is expected to be finalised before the end of the year 2025. The amount to be received by Mandatum will be paid in cash at the closing and depend on, for example, the timing of the closing. After the closing Mandatum will use the proceeds received to repay the EUR 200 million bank loan that was used to finance the acquisition of the Saxo Bank shares from Sampo plc.
The transaction has no impact on Mandatum Trader's customers. Mandatum Life Services Ltd will continue to offer the Trader service as a tied agent of Saxo Bank also after completion of the transaction.
Additional information:
Investors
Lotta Borgström
VP, Investor Relations
Tel. +358 50 022 1027
lotta.borgstrom[a]mandatum.fi
Media
Niina Riihelä
SVP, Communications, brand and sustainability
Tel. +358 40 728 1548
niina.riihela[a]mandatum.fi
Mandatum in brief
Mandatum is a major financial services provider that combines expertise in wealth management and life insurance. Mandatum offers clients a wide array of services covering asset and wealth management, savings and investment, compensation and rewards as well as pension plans and personal risk insurance. Mandatum offers services to corporate, retail, institutional and wealth management clients. At the centre of Mandatum's success are highly skilled personnel, a strong brand as well as a proven investment track record.
mandatum.fi/en/group
Distribution:
Nasdaq Helsinki
Financial Supervisory Authority
The principal media
www.mandatum.fi
