Yesterday Svenska Handelsbanken, the largest bank in Sweden and parent of one of the Swedish factoring industry’s major players, Handelsbank Finans AB, announced a bid for Denmark’s Midtbank. Midtbank is the parent of Midtfactoring, which is one of the Danish factoring market’s leaders, responsible for 25% of Denmark’s total market share by volume in 2000.
A bid of SKr2.5bn (US$246.1m) was made by Handelsbanken which has impacted on Midtbank’s share prices. The offer of DKr850 per share for Midtbank compares with the bank’s DKr338 close on 10 April. This represents a 151% premium.
Midtbank had total assets of 1.23bn at the end of 2000 and would add a network of 23 branches to Handelsbanken’s existing seven-branch operation in Denmark.
Handelsbanken, which has also expanded in Norway and Finland, plans to retain the Midtbank brand and said the cash offer would run from 11 April to 8 May.
Sources: BCR Publishing, FT
