All employees want to continue working after the merger, the banks say.
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The boards of directors of the two banks have entered into an agreement of intent for the merger.
“The merger will contribute to a common internal investment,” the banks wrote in a stock exchange statement.
– We are proud to be able to create an even bigger and better bank based in Innlandet. We are confident that the merger will bring benefits to Totens Sparebank, both for employees, customers, shareholders and local communities, says Geir Stenseth, president of Totens Sparebank.
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In the report the banks write that being a medium-sized Norwegian bank becomes “increasingly challenging” and point out that increasing state requirements in several sectors mean there will be a need for more resources in the future.
Significantly larger
Sparebank 1 Østlandet is significantly larger than Totens Sparebank.
Before the planned merger, Toten Sparebank had loans of 23 billion and Sparebank 1 Østlandet had loans of 197 billion.
At the end of the third quarter last year, Sparebank 1 Østlandet had net book assets of NOK 18.9 billion. At the same time Totens Sparebank had 2.5 billion.
The total cash consideration for the stake in Totens Sparebank is calculated at NOK 98.4 million.
The total consideration of the merger corresponds to an exchange ratio of 87.52% for Sparebank 1 Østlandet and 12.48% for Totens Sparebank.
You want to further include all employees
The Inland’s two largest banks are in the process of merging, according to the report.
Sparebank 1 Østlandet operates in Innlandet, Oslo and Akershus. The bank has 1,150 employees and 37 locations.
Totens Sparebank is currently located in Lena, Raufoss, Gjøvik, Hamar and Råholt. The bank has around 90 employees.
– We welcome all employees of Totens Sparebank. Everyone is needed and everyone will be able to work from their current workplace even after the merger is completed, says Richard Heiberg, CEO of Sparebank 1 Østlandet.
Bank director Rolf Delingsrud at Totens Sparebank joins the group management and is responsible for the integration of the banks. Other members of Totens Sparebank’s management will be given central positions in the merged bank.
Richard Heiberg retires April 1. Klara-Lise Aasen then takes over as CEO of Sparebank 1 Østlandet.
Requires approval
The banks expect to finally approve the merger on February 22.
Once the merger is approved, regulatory approval will be sought.
According to the preliminary progress plan, in the third quarter of 2024 they will be legally merged, while in 2025 they will have a first joint online banking business and the like.
The merged bank will become part of the Sparebank 1 alliance, of which Sparebank 1 Østlandet is now part.
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2024-01-03 06:31:05
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