Mandatum’s market cap is estimated to be in the €2-3 billion range. Each Sampo owner will receive one Mandatum share, meaning with a 2.5 billion valuation, the transfer value would be €4.89/share. It will be interesting to see how the share price moves in the first few weeks!
According to OP, Mandatum is overcapitalized: “Mandatum is clearly overcapitalized (solvency 282%) and we expect the company to distribute an additional dividend to Sampo before the partial demerger. The additional dividend could be approximately 500 million euros (about 1 euro/Sampo share).”
Speculations on Mandatum’s strategy? What if the capital remains in Mandatum and we see strategic moves in the Finnish or Nordic wealth management market? Which companies could be targets for Mandatum?
It would be quite interesting if that overcapitalization weren’t distributed as an extra dividend to Sampo. Usually, this tends to be the case before a company listing, although the situation can be seen as very different from a so-called normal IPO.
I have seen talk about corporate restructuring among Helsinki’s asset management companies for quite a long time, but considering Mandatum’s size, I personally hope that the focus turns more toward international operations. Finland is a rather limited market, after all, and as a nation, we seem to be fairly poor investors (though excellent asset managers can certainly influence this ). I would see the most interesting direction and strategy being to focus first on expansion in the other Nordic countries.
“Sampo’s Board of Directors has proposed a base dividend of EUR 1.80 for the 2022 financial year to the Annual General Meeting convening on 17 May 2023. Mandatum’s share of this was an internal dividend of 150 million paid by it, i.e. approximately EUR 0.30 per share, with the rest of the dividend flow coming from the Group’s P&C insurance operations.”
So if the share price is 4.89 and the dividend is 0.30, then that dividend yield is really good. Or is the internal dividend higher than what is typically paid out?
Not necessarily larger, but for instance, pursued corporate transactions can affect the dividend payout. It has been stated quite clearly that under Sampo’s ownership, Mandatum could not engage in M&A very freely, meaning more money may have been left available for distribution.
Agreed… I wonder if there would be any merit to the idea that Mandatum could acquire good smaller Finnish financial firms with proven concepts and, with a bit more muscle, scale them into the Nordics/Northern Europe?
I was first going to say, why not just shop abroad? Then again, if you find a smaller company whose concept is effectively scalable and it’s from Finland, you might have to dig less deep into your pockets than for a similar outfit in, say, Sweden.
Quite an interesting idea and, in my opinion, perfectly possible!
It’s behind a paywall, but it’s a pretty interesting article. Kauppalehti reviews, among other things, Mandatum’s scale (larger than Evli and OP Asset Management based on Financial Supervisory Authority documents) as well as its growth. Mandatum’s largest customer base is in Finland, but the highest growth figures (in percentage terms) are apparently in the other Nordic countries.
Additionally, something that caught my eye, as a positive thing? Of course, I don’t know what the situation is for other asset managers with similar clients.
“Its customer base includes ultra-high-net-worth individuals. MAM considers itself a pioneer in loan-based investment activities.”
I wonder if this will also be the future ticker?
I was also reflecting over Easter on how the investment insurance launched by Nordnet in Finland will affect Mandatum, or if it will at all.
At first glance, it might create some competition, but I really need to look more closely at the products offered by both companies. It’s possible this won’t affect Mandatum at all.
This is going completely off-topic, but I’ll ask anyway. What is the typical timeline for Inderes to create those company pages for new companies? For example, in Mandatum’s case, when will it be possible to add the company to your followed companies?
Pinging @Yu_Gong on this. I don’t think we have an official schedule for these. Usually, they are done once some material starts to become available from the company (webcast, listing prospectus, etc.)
@laurito@Menenski Actually, nothing’s stopping me from creating it right away, so here it is So you can already follow it now, and when the first webcasts and releases come out, you’ll get a notification about it
Nalle’s interview is more of an informal chat about Sampo and related topics. The audience is, of course, welcome to ask questions.
Mandatum will naturally be covered in the AGM presentations, as the demerger is on the agenda. But after the publication of the prospectus and the AGM, responsibility for investor relations will increasingly start to shift to Mandatum’s side.
Let’s also post in this thread that the Mandatum demerger prospectus has now been published and can be found behind the disclaimers at: www.sampo.com/jakautuminen
From now on, that prospectus will govern all communication related to Mandatum until the demerger is finalized, and commenting from Sampo’s side will be very limited from now on.
Found a nice, enlightening clip here about Mandatum’s upcoming spin-off as well. I must admit that I had thought of Mandatum more as an asset manager than a life insurer. This might be the case sometime in the future, but it’s a good clarification at this point, at least for me!
As I understand it, dividends will be generous because Mandatum is currently overcapitalized. Of course, possible corporate transactions may affect the situation, but those are also often financed from sources other than just the cash reserves.
I believe Mandatum will profile itself as a dividend company, just like practically all other listed Finnish financial companies.
If we take into account the culture created by Nalle, which was also discussed at the AGM, one could assume that they will be quite generous with dividends.
BUT!
With the twist that the dividend policy might be restricted if any potential acquisition targets are found. Just a pure guess; it will become clear once the company separates and they outline these matters.
EDIT: Adding here that I was thinking about this speculation over a longer timeframe. I somehow thought that the information Mirko posted below was already in this thread, but it must have been in the Sampo thread.
). I would see the most interesting direction and strategy being to focus first on expansion in the other Nordic countries.
So you can already follow it now, and when the first webcasts and releases come out, you’ll get a notification about it 
This might be the case sometime in the future, but it’s a good clarification at this point, at least for me!
