Swedish government sells more of its shares in Nordea
Tuesday, 18 June 2013
The Swedish government plans to sell up to 230 million shares it owns
in Nordea, the Scandinavian regions biggest bank. That will correspond
to 5.7 percent of its stake in the bank and will mean that Sweden will
cut its overall stake in the bank from 13.4 percent to 7.8 percent.
In a press release from the Swedish Ministry of Finance, the sales is
described as the Swedish government's desire to continue to offload
some of the organisations it controls and release them to the open
If the shares are valued at Tuesday's closing price, the deal could
worth Skr18.1 billion. However, it is likely that the price will be
slightly lower because the items sold are many. The last time the
government sold shares in Nordea, it was sold at a discount of just
under 5 percent.
Nordea's shares traded on the Stockholm Stock Exchange at closed at Skr
78:75 per share. The question is how the stock market will react on
Wednesday. Nordea fell sharply on October 3 last year following rumours
that the government will sell its shares in the company. Today Nordea
fell by 2.0 percent on the Stockholm Stock Exchange.
Revenues from the sale is planned to be used to reduce the country's
national debt. "The role of government is to regulate banks, not to own
them. Bank shares are risky assets and banks require strict regulation
and comprehensive supervision. The focus of the government is to reduce
government ownership in Nordea "said Financial Markets Minister, Peter
Norman in a written comment.
Government is targeting sales to Swedish players and buyers and
international institutional investors. They may make offers and enter
what they wish to pay for shares with Morgan Stanley, Credit Suisse and
SEB who have been appointed to handle the sale.
by Scancomark.com Team
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