Uddrag fra ABGSC’s analyse af Vestjysk Bank:
- DJS merger on track, potential DPS for 2021
- Business as usual after AL bid, synergies not specified
- Our fair value range is DKK 2.8-5.5 including synergies
Merger with DJS in January, upcoming bid from AL
Today, Vestjysk Bank (VB) CEO Jan Ulsø Madsen presented at our virtual Danish small/mid-cap seminar. Following the merger with Den Jyske Sparekasse (DJS) in January, VB has a market share in Denmark of ~2%. Lending exposure is concentrated in Jutland, where VB has its 30 branches. The bank has ~660 employees and its exposure is tilted towards business customers (60%), and particularly agriculture (15%). On 24 March, Arbejdernes Landsbank (AL) announced an upcoming bid on Vestjysk Bank of DKK 3.45 per share, corresponding to ‘22e adj. PE of 7.9x, which is significantly below the level of recent M&A transactions within the Danish banking sector. The bid is mandatory due to AL raising its stake from 32.4% to 60.7% (crossing the 33% ownership level).
Generalt om Commissioned Research: Bemærk, at man bør se bort fra eventuelle kursestimater i såkaldt commissioned research, og den underliggende analyse skal også tolkes med forsigtighed, da negative aspekter ikke nødvendigvis fremhæves.
