COPENHAGEN (Reuters) - The board of the owner of Nykredit, Denmark’s largest mortgage lender, has agreed with five Danish pension funds to sell a 10.9 percent stake in Nykredit for 7.5 billion Danish crowns ($1.17 billion) instead of seeking an initial public offer.
Forenet Kredit, which owns 89.8 percent of Nykredit, said the deal was subject to approval by its 104-member Committee of Representatives, and the authorities.
If the deal goes through then preparations for an initial public offering next year will be discontinued, Nykredit and Forenet Kredit said in a joint statement.
The funds involved are PFA Pension, PensionDanmark, PKA, AP Pension and MP Pension. The deal would raise their ownership of Nykredit to 16.9 percent, the largest unlisted equity investment by institutional investors in Denmark.
Reporting by Julie Astrid Thomsen and Teis Jensen; editing by Jason Neely