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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.

In the picture we see from left: Rolf Eek-Johansen, CEO of Modhi, Sverre Gjessing, Chairman of the Board of Kredinor and Klaus-Anders Nysteen, CEO of Kredinor. They have been central in enabling the conclusion of the agreement. Photo: Robert S. Eik

Modhi and Kredinor are currently two expert environments within responsible debt collection and portfolio purchasing and will bring the best of both cultures into the new company. Market and customer needs are changing rapidly, and this merger will put the company in an excellent position for future growth and development.

CEO of Kredinor, Klaus-Anders Nysteen will lead the company and Rolf Eek-Johansen, who is currently CEO of Modhi Finance, will be Vice President. The new company will be named Kredinor, and the head office will be in Oslo.

 

Good customer care

The strength of Kredinor lies in good and caring follow-up of people who have found themselves in a challenging financial situation. The merger between Kredinor and Modhi will make it possible to invest more in following up individuals with the help of customer service and new technology. By helping customers, we also help our clients so that they get faster payment and more predictable cash flows. In sum, this will be good for the profitability of Norwegian business – and for society.

New company form offers great opportunities

Kredinor is currently organised as a business cooperative, but prior to the merger process, the company will be transformed into a limited liability company with a newly established foundation as the owner. The new company form and merger will also provide opportunities for a more proactive strategy within the purchase of portfolios of defaulted debt. This will provide greater latitude and make Kredinor a more attractive partner for banks and others.

Social responsibility and customer dividends

The intention of the parties is for the Kredinor Foundation and the SpareBank 1 Group to end up with equal ownership interests in the company. As the part owner of the limited liability company, 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 clients.

Information about the process moving forward
The reorganisation of Kredinor is conditional on the Norwegian Ministry of Finance granting a tax exemption for the transfer of the business to Kredinor AS, as applied for, and The Financial Supervisory Authority of Norway granting permission to establish the new group. Similarly, a merger with Modhi is conditional on approval from the Norwegian Competition Authority and The Financial Supervisory Authority of Norway.

Until this is in place, there will be no changes in the business for our clients, the customers or employees.

Background
Kredinor is one of Norway’s largest debt collection companies with a history dating back to Christiania Kreditorforening in 1905. The company has about NOK 980 million in annual revenues and 420 employees. Modhi Finance AS and its subsidiaries are owned by SpareBank 1 Gruppen AS and has approximately NOK 610 million in annual revenues and 200 employees. Modhi Finance AS also has companies in strong growth in Sweden and Finland.

Contact us!
If you have questions about the process or what it means to you, do not hesitate to contact us.