COPENHAGEN, April 18 (Reuters) - Denmark’s Nordjyske Bank snubbed a bid by the country’s second-largest lender Jyske Bank on Wednesday, revealing plans to merge instead with Ringkjobing Landbobank.
The Jutland-based banks said in a joint statement that their boards had recommended the merger plan, under which Nordjyske shareholders will receive one Landbobank share for every two Nordjyske shares held, plus 18 Danish crowns in cash.
Based on Tuesday’s closing prices the deal, which requires shareholder approval, would value Nordjyske at 189.25 crowns per share, just below Jyske’s improved 190 crown cash offer two weeks ago which valued Nordjyske at 3.49 billion Danish crowns ($580 million).
“The merger is an attractive strategic match and will create an even stronger Jutland bank for the benefit of shareholders, customers, employees and the local communities,” they said.
Landbobank and Nordjyske said they saw synergies from the planned merger of around 60 million crowns in the short term and an additional 40 million crowns in the medium term.
Jyske would, given its stake in Nordjyske, own 11 percent of the merged bank. Jyske had tried and failed to divest its Nordjyske stake last year and decided instead to try to take over the whole bank rather than remain a minority owner.
$1 = 6.0245 Danish crowns Reporting by Teis Jensen Editing by Alexander Smith