Swedbank Pays Out Mammoth €750 Million to Parent Company
Swedbank Estonia raked over more than 750 million euros in capital and dividends to its Stockholm-based parent company in 2011, a capital outflow that is likely a new record in Estonian business.
The bulk of the total came from a restructuring, whereby Swedbank Estonia reduced its share capital from 603 million to 85 million euros, transferring the difference to Swedbank AB, Äripäev reported on January 30.
In the middle of last year, Swedbank Estonia also sold the stock of its subsidiaries in Latvia and Lithuania to the parent company, allowing it to make a dividend payment of 243 million euros.
Swedbank AB will not have to pay Estonian tax associated with the transactions, Äripäev noted, because taxes have already paid on the income through various other mechanisms.