We advised Danske Bank A/S in the sale of shares of Danske Capital AS to AS LHV Varahaldus
Ellex Raidla advised Danske Bank A/S in the transaction in which AS LHV Varahaldus, a subsidiary of the Estonian financial group LHV, acquired 100% of the shares of Danske Capital AS, an asset management company based in Estonia.
The sales transaction will be completed once it has been approved by the Financial Supervision Authority and the Competition Authority that is expected to happen towards the end of the first half of this year. The transaction price will be determined upon the finalization and LHV Group will announce it thereafter. In order to finance the transaction, LHV Group will increase the share capital of LHV Varahaldus and purchase subordinated bonds of the company.
The aim of the deal is to expand the business of LHV Varahaldus and thereby offer clients of the mandatory pension fund the best long-term investment service. After the finalization of the transaction the mandatory pension fund market share of LHV Varahaldus will be approximately 30%.
After the transaction has been finalized the plan is to merge Danske Capital with LHV Varahaldus and to merge pension funds with similar investments strategies. The receiving funds shall be LHV pension funds and the merging funds shall be the funds managed by Danske Capital.
Danske Capital manages three mandatory pension funds and two voluntary pension funds. The assets under management of Danske Capital currently stand at 235.8 million euros and there are over 43,000 active clients in the Danske mandatory pension funds.
Ellex Raidla advised Danske Bank A/S in this purchase transaction, prepared the transaction and provided legal support on negotiations and on concluding the agreement.
Our experts involved in the project were partner Raino Paron, senior associates Helen Ratso and Gerda Liik. The team was led by partner Sven Papp.
Additional information is available here.