“This is good news from the Norwegian Competition Authority, and in line with our expectations.” Kredinor and Modhi are confident that the process we have begun will come to fruition. The debt collection industry has a great responsibility to help people who are experiencing financial difficulties. This new organisation can invest even more in following up individuals through good customer service, new technology and innovative solutions,” says CEO Klaus-Anders Nysteen at Kredinor.
Kredinor and Modhi announced the news of their plans for a merger on 15 March 2022, subject to approval by the relevant authorities. The decision to dissolve the Kredinor SA cooperative was made at the annual meeting on May 3rd, and all associated activities have been transferred to Kredinor AS.
Due diligence is underway, and the parties will now apply to The Financial Supervisory Authority of Norway to approve the group structure of the combined organization. With the decision from the Norwegian Competition Authority, we are on track for the companies to complete the combination process in a good way.
Klaus-Anders Nysteen will lead the new company, named Kredinor, with the Nordic region as its home market.
“The news about the merger has been well received by our clients, including the banks. The development of the market, increased flexibility of services and the Nordic position are all emphasised as significant advantages of the new Kredinor,” says Nysteen.
Rolf Eek-Johansen, current CEO of Modhi Finance, will become Deputy CEO of the new Kredinor. Modhi has considerable experience with portfolio purchases, while Kredinor specialises in third-party debt collection.
“With today’s news from the Norwegian Competition Authority, we can with a high degree of confidence plan the integration of our solid professional environments within debt collection and portfolio purchases. We will help customers become better payers, and thus we also help our clients so that they get paid faster. It provides more predictable cash flows and better profitability”, says Rolf Eek-Johansen.
Kredinor will help customers become better payers, and thus we also help our clients so that they get paid faster
Kredinor has been restructured as a limited liability company with a newly established foundation as its owner. Along with Sparebank 1 Group, the Kredinor Foundation will be equal owners of Kredinor AS. The owners will jointly contribute funds to the company to ensure planned growth in accordance with market developments and customer needs.
“New Kredinor will take a stronger position, with greater social responsibility in the Norwegian business sector in the years to come. As part owner, the Kredinor Foundation will manage the values created in Kredinor over 117 years. The return on the funds can be allocated to socially beneficial purposes. In addition, portions of the dividends received from Kredinor AS can be paid as customer dividends to the limited liability company’s owners”, says Klaus-Anders Nysteen.
Merger of Kredinor and Modhi
Kredinor and SpareBank 1-owned Modhi have signed a letter of intent to merge and will thus become a leading company in debt collection and debt payment, with the Nordic region as their home market. At the same time, Kredinor is being reorganised from a business cooperative to a limited liability company, and a non-profit foundation is being formed to manage the ownership.