SWEDEN - Altor and Bure acquire Carnegie for SEK 2.3bn

The Swedish government, through the Debt Office, took over Carnegie and its then subsidiary in November last year and subsequently announced that it was to sell the two entities separately. Two auctions were organised, involving more than 20 potential buyers, with a holding company controlled by Altor and Bure acquiring both units.

Carnegie was acquired for SEK 1.4bn, of which SEK 525m is to be paid with interest in April 2010. The deal also includes an earn-out structure that will allow the Debt Office a share in potential future repayments of credit, set at a minimum of SEK 250m. Max Matthiesen was valued at SEK 500m, adjusted for dividend payments prior to closing. Of the total value, SEK 150 will be paid with interest in April 2010.

The new owners intend to continue to position Carnegie as a client-driven fee and commission-based business, and will continue the strategic realignment initiated by the bank's management and the Debt office. As part of this, the balance sheet of Carnegie was reduced from SEK 45.1bn at the end of the Q2 2008 to SEK 14.8bn at the end of Q4, while simultanously the key tier 1 capital quotient was strengthened to 3.0 as of year end 2008.

Max Matthiesen will continue to operate as an independent company.

At closing, Altor and Bure will hold a 65% and 35% stake respectively in the combined business, though a small stake will later be sold to management and key employees.

The transaction is expected to be completed in three months and is subject to regulatory approvals.

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• Nordics