STOCKHOLM, Sept 21 (Reuters) - Swedish bank Handelsbanken
said on Tuesday it proposed an extra
"dividend-in-kind", consisting of shares in Industrivarden
and corresponding to 4.42 crowns per share.
Investment company Industrivarden is Handelsbanken's biggest
owner, with 11% of shares, according to Handelsbanken's website.
"The board of directors proposes an extra dividend of shares
in Industrivarden corresponding, as of today, to a value of
approximately 8.7 billion Swedish crowns ($1.00 billion), or
4.42 Swedish crowns per share in Handelsbanken," the bank said
in a statement.
"The banks exposure to shares in the pension management is
reduced through a dividend in the form of shares, which
increases long-term stability in the banks capitalisation," it
said, adding that the proposal came on the back of a good
The bank said the shares were currently managed by the
pension fund Handelsbankens Pensionsstiftelse but it would buy
them before distributing to shareholders.
With the "dividend-in-kind", the bank estimated its common
equity Tier 1 capital ratio, a measure of financial health,
would fall to around 19.4% from 20.5%.
($1 = 8.6757 Swedish crowns)
(Reporting by Anna Ringstrom; Editing by Edmund Blair and Lisa