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Finnish-based group buys Swedish branch of Iceland's Kaupthing bank
Feb 16, 2009, 8:00 GMT
Helsinki/Stockholm - The Bank of Aland, based on the autonomous Aland islands in Finland, Monday said it was to buy the Swedish branch of the Icelandic banking group Kaupthing.
The Bank of Aland was to pay 414 million kronor (50.7 million dollars).
Kaupthing Bank was Iceland's largest bank when it was nationalized in October amid the global credit crunch. Two other major Icelandic banking groups were also nationalized at the time.
Shortly before that event, the Swedish central bank approved a 5-billion-kronor loan to Kaupthing Bank Sweden. That loan was to be repaid in full, the Bank of Aland said Monday.
The Bank of Aland was to take over the Swedish branch's private banking, asset management and capital markets operations while the Icelandic parent company Kaupthing Hf was to remain in charge of the main part of the corporate loan book, the statement said.
Managing director Peter Wiklof said the deal was part of the Bank of Aland's strategy to enter the Swedish market and 'reach 20,000 customers straight away, and increase our business volume by 20 per cent.'
The deal hinged on approval from regulatory authorities. The Bank of Aland was not to be affected by any ongoing litigations, the bank said.
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