On 24 Mar. 2025, Fastighets AB Balder, the largest owner of Norion Bank AB (publ), announced its preliminary decision to propose distributing its entire stake in Norion Bank to its shareholders as a dividend. Balder held 44.1% of the bank's shares at the end of 2024. The proposal will be discussed at a general meeting of Balder's shareholders, but the date has not been disclosed. The company's press release stated that the transaction would proceed when Balder's credit metrics and credit rating would not be negatively affected. Consequently, the timing of the transaction is currently uncertain.
Erik Selin, through Erik Selin Fastigheter AB, held 33% of Balder's capital at the end of 2024. He would receive 14.55% of Norion Bank's shares in the transaction, increasing his direct stake in Norion Bank to nearly 34%. A number of Balder's largest owners are Nordic investment funds, some of which may look to divest the Norion Bank shares they acquire.
In our issuer rating on Norion Bank, we do not adjust our view of its standalone creditworthiness due to its ownership profile. The proposed distribution would increase diversification among the direct ownership in the bank. However, the future ownership profile is uncertain, as is timing of the transaction and shareholder approval.
We will monitor the proposal's progress and assess its long-term effect on our view of the bank's ownership profile once it is approved.
This commentary does not constitute a rating action.
Contacts:
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com