According to the conditions of the offer (Offer Document, Section 1.5), Sampo should have been tendered acceptances of more than 90% of the Storebrand shares and votes during the offer period. The amount of shares and votes tendered was less than 90%.
Furthermore, the offer condition concerning Storebrand's results was not fulfilled. The company's performance was weaker than the threshold value determined in the offer conditions.
Share prices have gone down substantially worldwide during the summer and the drop has been further deepened by the recent dramatic events.
"The combination of Sampo and Storebrand was, and still is, strategically well-founded. However, the drawn-out offer process, the negative development of the financial markets and the simultaneous weakening of the Storebrand results have led to the conclusion that a completion of the transaction at the original offer price was no longer financially justifiable for Sampo's shareholders", says Björn Wahlroos, CEO of Sampo.
The arrangement between Sampo's property and casualty insurance and the Nordic property and casualty insurance company If was conditional upon the Storebrand transaction. Sampo considers the P&C insurance arrangement interesting also in the current situation and is investigating the possibilities for completing the If-arrangement with Skandia and Storebrand.
Sampo and Storebrand announced their intent to combine their respective operations on 21 May 2001 and the offer period commenced on 11 June 2001. Sampo offered then NOK 75 for each Storebrand share, of which the cash consideration represented approximately 77% and Sampo shares the remaining part. The market value of the offer was in the last few days approximately NOK 71. Sampo's offer expenses for the process are approximately EUR 6.5 million, which include, however, expenses for the pending If-arrangement.
The shares of those Storebrand shareholders who have accepted Sampo's offer will be returned to their book-entry accounts on 2 October 2001 at the latest. Enquiries in the matter will be answered by Sundal Collier & Co ASA.
Head of Group Communications
FOR FURTHER INFORMATION, PLEASE CONTACT:
CEO Björn Wahlroos at the news conference on 1 October 2001 at 3 p.m. Finnish time (1 p.m. UK time). The conference is held at the address Sampo, Eteläesplanadi 8, Helsinki, Finland.
Jarmo O Salonen, Head of Investor Relations, tel. +358 10 514 0030
CEO Björn Wahlroos at the teleconference on 1 October 2001 from 4 p.m. Finnish time (2 p.m. UK time). To participate in the teleconference, please call +44 (0) 8700 559 372 (European delegates) or +1 646 862 1007 (US delegates).
TITLE: BOARD DECISION
CHAIRMAN: Jarmo O Salonen, Head of IR
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