Sampo was chopped by Exist an Iceland selling its shares under pressure. But Sampo is also buying back its shares and still sitting on a pile of cash from the sale of its bank. IMHO, SAXPF is a screaming buy in the 16's. I may get a few more in coming days.
Iceland's Exista to sell $2.2 bln Sampo stake
* Reuters
* , Tuesday October 7 2008
(Releads, adds details and background paras 2 and 4)
HELSINKI, Oct 7 (Reuters) - Icelandic investment firm Exista will sell its near 20 percent stake in Finnish insurer Sampo to reduce liabilities but will keep its other assets, the group said in a statement on Tuesday.
The firm said it would start an accelerated bookbuild with Citigroup and Morgan Stanley to sell its 114.3 million Sampo shares, which have a value of some 1.6 billion euros ($2.2 billion) based on Sampo's closing price of 14.40 euros on Monday.
The move is the latest blow for the struggling Atlantic nation, which agreed on Monday to adopt sweeping powers over banks as its financial system tottered, its currency plunged 30 percent and a leading agency cut its credit ratings.
"In light of the prolonged deterioration in the global financial markets, it is prudent to scale down exposure and reduce leverage," Exista said in a statement.
"Therefore we have decided to (sell) ... in order to significantly decrease Exista's outstanding liabilities," it said.
Exista's other holdings include a 24.7 percent stake in Kaupthing and close to 9 percent in Norway's Storebrand.
Its decision to sell comes four days after an Exista spokesman was quoted in the Finnish media as saying the investment firm was happy with its stake in Sampo.
7.10.2008 13.55
Repurchase of Sampo plc's A shares
Based on the authorisation granted by the Annual General Meeting on 15 April 2008, Sampo plc’s Board of Directors decided today to repurchase 10 million Sampo’s A shares with distributable capital and reserves. The amount repurchased corresponds to approximately 1.7 per cent of the total number of shares. Repurchases decrease the distributable capital and reserves.
The shares were acquired through accerated book building offering, and thus not in the proportion in which the shareholders’ shareholdings are distributed (private repurchase). The price paid was 11.50 euros per share.
Shares were purchased from Exista hf. and its subsidiaries, because of the low transaction costs and the price lower than in public trading. The shares purchased on the basis of this decision will be cancelled, and therefore the purchase will benefit all shareholders in proportion to their holding.
At the time of this decision the situation in the financial markets is exceptionally uncertain. In the Board’s opinion the above purchase is in the interest of all shareholders. The purchase also prevents an overliquidity situation in the markets.
On the basis of the above weighty financial reasons for repurchases referred to Companies Act exist.
SAMPO PLC
Jarmo Salonen
Head of Investor Relations and Group Communications
phone +358 10 516 0030 |
