LHV buys Danske Bank's Estonian pension funds
LHV Group’s asset management subsidiary, AS LHV Varahaldus, has bought Danske Capital AS for €10.92m, the bank announced to the stock exchange on Wednesday.
The final price was determined after the balance sheet of Danske Capital AS as of April 30 was audited, LHV said.
The share purchase agreement had been signed on Jan. 29 this year. In February, LHV Varahaldus had increased its share capital by €8.2m euros by issuing new shares to its parent company, LHV Group. LHV Group also bought €0.6m worth of subordinated bonds of LHV Varahaldus.
Following the completion of the transaction, LHV Varahaldus' market share in mandatory pension funds in Estonia is approximately 30%.
Danske Capital managed three mandatory and two voluntary pension funds, the assets of which stood at €235.8m at the moment the deal was made. Danske's mandatory pension funds had over 43,000 active clients.