Svenska Handelsbanken AB (SVNLF.PK,SVNLY.PK), a Swedish lender, said on Wednesday that it has inked a deal with S-Bank Plc, Oma Savings Bank Plc, and Fennia Life Insurance Company Ltd, to sell certain of its operations in Finland.
The private customer, asset management, and investment services operations will be sold to S-Bank, who will also take over lease agreements for branch offices.
Oma Savings Bank will buy the small and medium-sized enterprise operations, whereas Fennia Life Insurance will acquire the life insurance operations.
The cash consideration of the deal is around 1.300 billion euros. In addition, it will obtain a maximum premium payment of 8.5 million euros. The transaction is expected to be finalized during second half of 2024.
The transaction includes lending volumes of around 4.1 billion euros corresponding to a risk-weighted exposure amount of approximately 1.3 billion euros, and deposit volumes of around 2.8 billion euros.
It also represents approximately 30 percent of the lending volumes and approximately 50 per cent of the risk-weighted exposure amounts in the Bank's operations in Finland.
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