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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 market.

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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