Consortium of pension companies has made an offer to acquire shares in Nykredit

A consortium of investors headed by PFA has offered to acquire shares in Nykredit from Forenet Kredit, Industriens Fond (The Danish Industry Foundation) and Foreningen Østifterne. The consortium, which consists of the pension companies PFA, PensionDanmark, PKA, AP Pension and MP Pension, has jointly offered to buy 16.9 % of the shares in Nykredit at a total price of DKK 11.6 billion.

The consortium consists of five of Denmark’s leading pension companies managing pension funds of more than DKK 1,000 billion in total. With the offer Nykredit can ensure a stable long-term ownership and a strong capital structure, which provides flexibility and opportunities to develop the business benefitting owners as well as customers.

Allan Polack, Group CEO in PFA, says on behalf of the consortium:

“In the consortium, we are very pleased that we reach an agreement with Forenet Kredit to join Nykredit’s group of owners. We have had an ongoing dialogue and are happy that we have made a solution together, which represents both an attractive investment for us as well as a good solution to Nykredit’s long-term ownership and capital structure.”

The new investors have made an offer to acquire shares in Nykredit as the company holds a strong market position and has been through a notable development in recent years. This has been driven by Nykredit’s management, who has been heading the transition and has a clear strategy for how to continue the strong development of Nykredit and Totalkredit. Hence, the consortium is confident that Nykredit will continue to realise its commercial potential going forward, which will ensure a stable and competitive return for the consortium’s pension savers.

An optimal solution for all parties

The consortium believes that having the future ownership of Nykredit shared primarily between Forenet Kredit and the consortium is a strong model, as both are based on the principle of customer ownership.

Nykredit’s new ownership model is an excellent solution, where, in particular, the KundeKrone model implies that both parties will have a strong interest in the company is paying out an attractive dividend, and that the minority shareholders will receive a dividend flow reflecting the risk of the investment. Thus, the future owners of Nykredit has agreed on a financially viable model, which meets the objectives of the respective parties.

About the offer

The consortium, which represents more than 2 million individual pension savers, is offering to acquire 16.9 % of Nykredit’s equity capital at a total price of DKK 11.6 billion. The five pension companies in the consortium distribute the investment and equity interests in the following way:

• PFA: DKK 6.9 billion (10.03 % equity interest)
• PensionDanmark: DKK 1.65 billion (2.4 % equity interest)
• PKA: DKK 1.65 billion (2.4 % equity interest)
• AP Pension: DKK 1.1 billion (1.63 % equity interest)
• MP Pension: DKK 300 million (0.44 % equity interest)