AS LHV Varahaldus, a subsidiary of AS LHV Group, has finalised the deal to fully acquire Danske Capital, the asset management arm of Danske Bank based in Estonia.

The share purchase deal was signed on 29 January 2016. AS LHV Varahaldus raised its share capital by EUR8.243m in February to finance the deal.

The preliminary price for the 100% stake in Danske Capital has been set at EUR11m with the price consisting of a fixed amount of EUR6.6m and the size of the equity capital as at the end of March.

"The final price shall be determined within 45 business days following the transaction after the balance sheet of Danske Capital AS as at 30 April has been audited," AS LHV Varahaldus said in a statement.

Following the transaction, Danske Capital will be merged into AS LHV Varahaldus. AS LHV Varahaldus will continue its activities under the brand name Aktsiaselts LHV Varahaldus.

"There shall be no material change in the activities, technical setup or structure of AS LHV Varahaldus," the company added.

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Erkki Raasuke, Andres Viisemann, Erki Kilu of AS LHV Varahaldus will be appointed on the supervisory board in Danske Capital, while Mihkel Oja, Joel Kukemelk on the management board.

LHV Varahaldus chairman of the management board Mihkel Oja said: "After today’s transaction, the number of clients saving in the LHV II pillar pension funds shall be increased by 30% and the volume of LHV pension funds shall be increased by 40%.

"The merger of the asset management companies contributes to our goal of providing the best long-term investment service to the clients of the II pillar pension funds."