Danish mortgage lender Nykredit considers stake offer over IPO

COPENHAGEN, Nov 3 (Reuters) - Nykredit, Denmark’s largest mortgage lender, said on Friday it could sell a minority stake rather than pursue a planned

COPENHAGEN, Nov 3 (Reuters) – Nykredit, Denmark’s largest mortgage lender, said on Friday it could sell a minority stake rather than pursue a planned listing, after its main investor Forenet Kredit received an offer for its holding.

Nykredit is 89.8 percent owned by Forenet Kredit, which is a union of Danish homeowners with mortgage loans in Nykredit.

A consortium of three Danish pension funds, PFA Pension, AP Pension and Pension Danmark, had made the offer, Danish media group Finans reported. All three declined to comment.

“The Managements of Forenet Kredit and Nykredit are pleased to note that the Group’s significantly improved financial results have expanded the opportunities for raising new equity,” Forenet Kredit and Nykredit said in a statement.

The boards would consider whether the offer “constitutes an attractive alternative to a stock exchange listing, including whether it ensures a satisfactory scope for raising new equity capital”, they added.

Nykredit said in September it had chosen U.S. banks JPMorgan JPM.N and Morgan Stanley and Danske Bank as joint global coordinators for its IPO.

The IPO preparations will continue unchanged until further notice, Nykredit and Totalkredit said. (Reporting by Stine Jacobsen; editing by Alexander Smith)

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