Telemark Sparebank formed as Drangedal, Sparebanken DIN Telemark merge

The boards of Drangedal Sparebank and Sparebanken DIN Telemark have approved a merger agreement, establishing Drangedal Sparebank as the legal successor for the new Telemark Sparebank. This follows an initial intention announced on September 19, 2025. The merged entity's book equity, adjusted for hybrid capital and other fair value adjustments, is NOK 1,804m as of Q3 2025, representing a price-to-book ratio of 1.01x. The agreed exchange ratio is 41.24% for Drangedal Sparebank and 58.76% for Sparebanken DIN Telemark.

The consideration for the acquisition of Sparebanken DIN Telemark will involve a combination of equity certificates in the new bank and cash payments to existing owners, Sparebankstiftinga Bø and Sparebankstiftinga Seljord. The combined bank will issue 7,348,307 equity certificates.

The merger is slated for completion around June 1, 2026, pending approval from both banks' general assemblies/boards of trustees and the Financial Supervisory Authority of Norway. Norne Securities AS and Advokatfirmaet Selmer AS served as joint financial and legal advisors.