Following a flagging notification by Exista hf. to Sampo Oyj ("Sampo") today, Sampo has announced to the Helsinki Stock Exchange that through share trades the total number of Sampo A-shares controlled by Exista has risen today above 15 per cent of Sampo's issued share capital. After the trade, Exista controls 90,118,408 A-shares in Sampo, representing 15.48% of total share capital. Exista has purchased the shares at an estimated average price of 20.5 euros. According to Sampo's closing price yesterday the value of the shares is around 1.9 billion euros.
Exista has completed an agreement to acquire 55,340,400 A-shares in Sampo, held by Exafin B.V. an indirect wholly-owned subsidiary registered in the Netherlands. Exafin B.V. was previously an indirect subsidiary of the Tchenguiz Family Trust.
Financing has been secured for the transaction by Exista with a combination of debt facilities, issuance of new shares, own shares and cash. In relation to the purchase, and subject to the completion of the transaction, the Board of Directors of Exista has made a commitment to exercise its authority to issue 526,652,209 new shares in Exista, which will be used as a payment in the transaction. Following the payment of new shares and Exista's own shares, the Tchenguiz Family Trust will become the beneficial owner of 559,404,098 shares in Exista with a minimum lock-up period of 12 months. Further payments are subject to a proposed dividend payment to be determined by shareholders at Exista's Annual General Meeting in March 2007.
In connection with the transaction, Exista has completed a long-term debt facility agreement with a major global bank. Exista is well capitalised for this transaction and following the purchase Exista's equity ratio is estimated above 40%.
Prior to this transaction, Exista had control of 25,267,053 A-shares in Sampo via Exista fjárfestingar ehf. and Vátryggingafélag Íslands hf., two wholly-owned subsidiaries registered in Iceland. In addition, Exista fjárfestingar ehf. has, as of today, purchased further 9,510,955 A-shares in Sampo.
The transaction is subject to, inter alia, approval of the relevant supervisory authorities.
Sampo Oyj is the leading Nordic insurer with an annual premium income of 3.5 billion euros in P&C insurance and 600 million euros in life insurance. Sampo Oyj comprises of If, the leading P&C insurance company in the Nordic and the Baltic countries, and Sampo Life, a life and pension insurer. Sampo is also a significant investor on the Nordic scale, with investment assets in excess of 20 billion euros. Sampo Oyj is listed on the OMX Helsinki Stock Exchange.
Lydur Gudmundsson, Executive Chairman of Exista commented:
"This strategic investment we consider to be long-term and it reflects our faith in Sampo's future as a leading player in the Nordic financial markets. It fits perfectly with Exista's focus on financial services and meets our criteria of solid financials, strong market position and competent management."
Enquiries:
Exista hf. +354 550 8600
Lydur Gudmundsson
Executive Chairman
Sigurdur Nordal
Managing Director
Group Communications +354 550 8620 / +354 860 8620
sn@exista.com
About Exista
Exista is a financial services group with operations in the areas of insurance, asset finance and investments. The company is a leading insurance underwriter in Iceland, as well as the country's largest provider of asset finance products. Exista is also a major shareholder in Kaupthing Bank, Bakkavör Group and Iceland Telecom, among other companies. Exista is listed on OMX Nordic Exchange in Iceland and shareholders are over 30 thousand.