Finnish asset management firms Evli and EAB Group are looking to combine their operations, creating a firm with client assets of around €20bn.
The two parties have signed a letter of intent in this regard, with plans to merge EAB into Evli.
Evli shareholders would own nearly 91% of the shares and 99% of the votes in the merged business, while EAB shareholders will own the remainder.
The proposed transaction is anticipated to conclude during the second half of this year, with permanent annual synergy effects of nearly €8m expected to be realised from early next year.
Shareholders of EAB will secure up to €3m in cash as well as “newly issued series B shares in Evli an aggregate number equal to ten percent (10%) of the aggregate number of issued and outstanding shares (including series A shares and series B shares) in Evli”.
The merged entity is said be a “leading company” on the Helsinki Stock Exchange, providing investing as well as wealth management services to institutions, corporations and private persons.
It is said to have a stronger position in alternative investment products, compensation consulting and personnel funds management, apart from having strong traditional wealth management proposition.
The combined business will operate as Evli and retain Evli’s existing operating model, with its CEO Maunu Lehtimäki retaining the same role.
Evli’s existing board members would remain in the same position in the merged group.