LONDON - The Finnish financial company, OP-Pohjola Group, said Thursday it has offered to acquire the shares it doesn’t already own in Pohjola Bank for about 3.4 billion euros, or about $4.6 billion, in cash.
The bank’s directors are expected to evaluate the offer and make an announcement by Feb. 14. The offer will run through Apr. 1.
OP-Pohjola and its related entities own about 55.4 percent of the outstanding shares of Pohjola Bank and control about 75.8 percent of the voting rights.
The Finnish company is offering €16.8 a share for Pohjola, or €3.4 billion in total. That represents an 18 percent premium on Wednesday’s closing price of €14.23.
OP-Pohjola Group said it is seeking to streamline its structure and decision-making processes as a result of tighter financial regulation. OP-Pohjola is a cooperative financial services group established in 1902. Its operations include banking, asset management and insurance. The company posted pretax earnings of €601 million in 2012.
The deal would be funded through existing capital and debt financing.
JPMorgan Chase is the financial adviser to OP-Pohjola, while Deutsche Bank is advising Pohjola Bank. The legal advisers are Castrén & Snellman for OP-Pohjola and Hannes Snellman for Pohjola Bank.
