June 2010

Financial advisor to Fjordbank Mors in connection with rights issue

Fjordbank Mors was a merger between listed Morsø Bank and non-listed Morsø Savings Bank.

The merger was executed to strengthen the capital base of the merged bank, partially due to the fact that Morsø Savings Bank, which was the largest shareholder in Morsø Bank, under current legislation, could not include the shareholding in its solvency calculation.

In connection with the merger there were significant impairments and fair value adjustments. This resulted in the merged bank, with an estimated solvency ratio of 10.9 %, wanting to strengthen its capital base.

The bank’s largest shareholder Morsø Savings Bank Foundation, which owned approximately 65 % of the share capital, could not draw more than approx. half of the rights issue. In collaboration with the management ATRIUM developed a model with the aim of ensuring maximum total subscription.

Following the share issue Fjordbank Mors had a solvency ratio of approx. 12.4 %, and the issue was for the most part fully subscribed.

We were lead manager and responsible for organizing the issue, including communication and coordination with the FSA and NASDAQ OMX Copenhagen, preparation of the prospectus and related communications and materials.