Earlier today, Storebrand paid the purchase sum which means that SPP is now owned by Storebrand. The transaction was completed as reported in Handelsbanken's press release of 3 September 2007.

 

The proceeds of the sale were SEK 16.2 billion after Handelsbanken received an extra distribution from SPP amounting to SEK 1.4 billion and payment for subsidiaries of SEK 0.6 billion. The purchase sum was thus SEK 18.2 billion including interest on the purchase sum of SEK 0.2 billion. The capital gain is expected to be around SEK 4.2 billion before restructuring costs, which are expected to be less than SEK 400 million.

 

The final capital gain will be reported when the Bank publishes its figures for the whole of 2007 on 27 February 2008.

 

As a result of the transaction, Handelsbanken is increasing its capital base by 2 percentage points, with 1.8 percentage point of this an increase in the Tier 2 capital. (Calculations concerning the capital base and Tier 2 capital are performed as if the transaction had been completed at the end of September).

 

"The transaction boosts our already very stable finances and also gives us even greater room for manoeuvre," says Ulf Riese, CFO of Handelsbanken.

 

Handelsbanken's CEO Pär Boman sums up the transaction:

 

"This is an excellent way to end a very good year, when Handelsbanken did more business and gained more satisfied customers than ever before. We are now entering 2008 - better equipped than for a very long time."