October 25, 2017 / 5:39 AM / in a month

BRIEF-Norway's Storebrand to buy asset manager Skagen

Oct 25 (Reuters) - Storebrand Asa

* Storebrand acquires SKAGEN and strengthens its position in a growing savings market

* The acquisition increases the Storebrand Group’s share of the of NOK 221 bn private fund savings market from 4% to 17%

* SKAGEN has approximately 140,000 unit holders

* Storebrand will acquire all of the A-shares, and 10 000 of the B-shares in SKAGEN, equivalent to 90.95% of the share capital in the company and 99.9% of the voting rights in the company‍

* Will pay selling skagen shareholders a sum of NOK 1.6 billion for shares at time of transaction​

* ‍75% of price will be new issued shares in storebrand asa and 25% will be in cash​

* ‍in addition, there is a possibility of an additional earnout based on positive development in skagen’s results and income, and a share of performance fees as a result of excess return relative to skagen funds’ relevant benchmarks​

* ‍cash payment will be financed by sale of short-term bonds in storebrand asa’s liquidity portfolio, which will amount to nok 1.5bn after transaction​

* ‍in addition to liquidity portfolio, storebrand asa has an unused credit facility of eur 240m​

* ‍transaction is expected to have an immediate 2 percentage point negative impact on storebrand’s solvency margin​

* ‍it is expected that transaction will strengthen group’s solvency margin and dividend capacity going forward​

* ‍conclusion of transaction is dependent upon approval by norwegian financial supervisory authority and ministry of finance, as well as norwegian competition authorities in norway and sweden​ Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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