Monday July 6, 03:12 PM
Fionia Bank sees sale of operations by end-August
COPENHAGEN, July 6 (Reuters) - Denmark's Fionia Bank (Copenhagen: AMSP.CO - news) said on Monday a sale of its viable units would likely be completed by end-August, after which its chairman and other shareholder-elected board members would step down.
Fionia Bank A/S, which 30 branches, mainly on the island of Funen, fell into the hands of state administrators in February after heavy writedowns and loan losses from a property bubble that burst.
On June 18, the Nordic region's biggest banking group, Nordea, and Danish Spar Nord Bank both expressed an interest in Fionia.
Fionia is owned by a state bank admistration company called Finansiel Stabilitet that aims to sell off viable assets.
Fionia chairman Bo Staermose has told Finansiel Stabilitet that he and the other shareholder-elected board members, except for Finansiel Stabilitet's own representative, aim to retire 'as soon as possible', Fionia said on Monday.
'The shareholder-elected members of the board find that sales of the profitable part of the bank has now come so far that it is appropriate to entrust the responsibility for the final sale of the bank to Finansiel Stabilitet,' it said.
'The efforts of Finansiel Stabilitet to sell Fionia Bank A/S as a package including all retail customers and all the profitable business customers continue unchanged,' it said. 'It is expected that the process can be completed end of August.'
Finansiel Stabilitet will soon appoint two new shareholder-elected members, and its representative Jorn Kristian Jensen will at the same time become chairman of Fionia, the bank said.
Finansiel Stabilitet runs seven Danish banks unable to meet legal demands for solvency or liquidity ratios.
(Reporting by John Acher; Editing by Dan Lalor) Keywords: FIONIA SALE/
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