Swedbank offers to underwrite a share issue for Hansapank

Swedbank offers to underwrite a share issue for Hansapank Swedbank has been active in the Estonian banking market for several years. Through the merger this year between the Estonian Hoiupank and Hansapank, Swedbank became a shareholder in the merged Hansapank. Swedbank owned close to 20 per cent in Hoiupank before the merger and had established a strategic commercial relationship with that bank. To develop the relationship with Hansapank further, Swedbank has acquired additional shares and now holds just above 30 per cent of its share capital (published September 10). The ownership and cooperation in Estonia is a result of the Swedbank strategy of building a network of alliances with nationally and locally strong banks throughout the Nordic and Baltic sea region. A proposal has been made to increase Hansapank's share capital by an auction of about 14 million new shares. A limited number of shareholders have been invited to the auction. Swedbank and its international adviser, JP Morgan, are of the opinion that an increase of the share capital ought to be fulfilled through a rights issue, with equal rights and an opportunity for all shareholders in Hansapank to subscribe for new shares in the proportion one to four. Swedbank is prepared to guarantee the whole issue at a price of EEK 100 per share, subject to normal procedures, including a due diligence, and approvals from the relevant authorities in Estonia and Sweden. Swedbank will today call for an extraordinary general meeting of Hansapank's shareholders to decide upon such a share issue. The European Bank for Reconstruction and Development (EBRD), one of the larger shareholders of Hansapank, supports this course of action. For further information, please contact: Lars-Olof Ödlund, Senior Advisor, telephone +46-708-68 15 80 Håkan Källåker, Executive Vice President, telephone +46-8-585 915 30 Einar Frydén, Information Manager, telephone +46-8-585 916 30, +46-705-11 00 33