Nordjyske Bank to merge with Ringkjøbing Landbobank

In continuation of a takeover offer from Jyske Bank, Nordjyske Bank has decided to merge with Ringkjøbing Landbobank. Plesner advised Nordjyske Bank throughout the process.

On 13 March 2018, Jyske Bank announced a voluntary takeover offer to all shareholders in Nordjyske Bank of DKK 170 per share, equivalent to a 42.9% premium to the undisturbed share price at that time. The Board of Directors of Nordjyske Bank rejected the offer, and on 5 April Jyske Bank submitted a new and higher offer of DKK 190 per share.

At the same time, Nordjyske Bank negotiated a possible merger agreement with Ringkjøbing Landbobank allowing Nordjyske Bank to continue as a strong local bank.

The parties succeeded in entering into a merger agreement under which the Nordjyske Bank shareholders will receive one share in Ringkjøbing Landbobank and a cash consideration of DKK 18 per two Nordjyske Bank shares owned, equivalent to DKK 193.50 per share, ie higher than the offer submitted by Jyske Bank.

The merger was adopted by 97.2% of the votes represented at the extraordinary general meeting of Nordjyske Bank on 7 June 2018.

Plesner assisted in reaching this solution for the bank and its shareholders in close cooperation with Nordjyske Bank's financial adviser Danske Bank A/S.

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