Norway's largest financial group, DnB NOR ASA, said Thursday that shareholders approved a 14 billion kroner ($2.5 billion) rights issue to offset losses suffered during the financial crisis.The group will sell shares at 47.3 kroner ($8.39), a 27 percent discount to the estimated share price of 64.5 kroner after the issue. Wednesday's closing share price was 68.4 kroner.
Shareholders approved the move at an extraordinary general meeting in Oslo.
DnB NOR, which did not apply for support from Norway's bank relief fund, announced the cash call in September. It said then that "based on the current improved market conditions" the rights issue was "in the best interest of shareholders and customers."
The bank saw net profit drop 21 percent in the third quarter. The result improved on the second quarter _ when writedowns on DnB NOR's Latvian and Lithuanian operations precipitated a 60 percent profit tumble. But the bank continued to express "uncertainty" about its exposure in the Baltic countries, which have been severely hit by the economic downturn.
DnB NOR shares were down 1.5 percent at 67.4 kroner ($11.96) in midday trading in Oslo.
The rights issue is being underwritten by a syndicate of banks, including Morgan Stanley, and supported by DnB NOR's largest shareholders, among them the Norwegian government with a 34 percent stake.
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http://www.dnbnor.no
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