DNBNOR - DNB NOR TO ACQUIRE POLISH BANK

DnB NOR has signed an agreement to acquire a total of 76.3 per cent of BISE Bank in Poland through its partially-owned subsidiary DnB NORD. This will result in a twofold increase in operations in the Polish market. Complete announcement at newsweb.no DnB NOR has signed an agreement to acquire a total of 76.3 per cent of BISE Bank in Poland through its partially-owned subsidiary DnB NORD. This will result in a twofold increase in operations in the Polish market. BISE Bank`s operations focus on retail customers, small and medium-sized businesses and parts of the public sector, while DnB NORD in Poland currently serves only corporate clients. BISE Bank has 780 employees and 46 branches throughout Poland. The shares will be purchased from the French Crédit Coopératif (51.7 per cent) and the Polish ARP (24.6 per cent), a government-owned industrial development agency. The acquisition price represents 3.3 times book equity and values the Polish bank at approximately EUR 140 million. The final consideration may be subject to adjustment. Existing shareholders in BISE have pre-emptive rights to purchase the shares DnB NORD has currently agreed to acquire. DnB NORD will negotiate with the minority shareholders with an aim to take over the remaining shares. DnB NORD was established in 2005. In addition to the Polish market, the bank has operations in Finland, Estonia, Latvia, Lithuania and Denmark. DnB NOR ASA owns 51 per cent of the banking group, while Norddeutsche Landesbank (NORD/LB) owns the remaining shares. DnB NOR will contribute its part of the financing. `DnB NORD is an important part of our international operations. The acquisition of BISE Bank represents a significant expansion of our operations in Poland, giving us a sound foothold in the retail market, the public sector and the SME segment,` says Svein Aaser, group chief executive in DnB NOR and board chairman in DnB NORD. BISE Bank was established in 1990 by Crédit Coopératif and the Polish Ministry of Labour and Social Policy to provide financing to small and medium-sized companies and contractors. Since then, the bank has expanded its customer base to include retail customers, the energy sector, condominiums and local authorities. Pre-tax profits for the first nine months of 2006 totalled EUR 5 million, while total assets were EUR 600 million at end-September. Potential synergies of approximately EUR 8 million have been identified, mainly from sales of DnB NORD products to customers of BISE Bank. For information about DnB NORD and its activities in Poland, see dnbnord.com. http://www.newsweb.no/index.asp?melding_ID=141611