Aktia Pankki Oyj : acquires the wealth management operations of Taaleri and companies initiate co-operation supporting the strategy of both parties

Aktia Bank Plc
Insider information
10 March 2021 at 8.00 a.m.

Aktia acquires the wealth management operations of Taaleri and companies initiate co-operation supporting the strategy of both parties

On 10 March 2021, Aktia Bank Plc (“Aktia”) has signed a contract with Taaleri Plc (“Taaleri”), with which Aktia has agreed to acquire the wealth management operations of Taaleri, including 100% of the following companies: Taaleri Wealth Management Ltd, Taaleri Fund Management Ltd, Taaleri Tax Services Ltd and Evervest Ltd. The purchase price is EUR 120 million (on a cash and debt free basis), of which up to EUR 10 million can be paid with Aktia shares. Aktia directs its share issue to be subscribed by Taaleri in conjunction with the completion of the transaction. The rest of the payment will be delivered in cash. As a result of the transaction, Aktia will strengthen its own funds so that Aktia’s capital adequacy is solid also going forward.

As a part of the transaction, the parties have agreed on initiating co-operation that supports the strategy of both parties, through which Aktia will be the distributor of Taaleri’s alternative investment products in Finland.

In conjunction with the transaction, Aktia Fund Management Company Ltd and Aktia will sell the business operations for the portfolio management of special investment fund (non-UCITS) Aktia Commercial Properties as well as the fund Aktia Infra I KY to Taaleri.

Background to the transaction

Asset management is in the core of Aktia’s strategy and acquiring Taaleri Plc’s wealth management operations supports Aktia’s objective to be the best asset manager in Finland. Together, Aktia and the operations that are being transferred from Taaleri, form one of the leading asset management organisations in Finland that combines excellent services, customer orientation, strong investment knowledge, comprehensive portfolio management and digital capabilities. With the transaction, Aktia will offer its customers first-class asset management products, price-winning Private Banking competence and comprehensive banking and life insurance services.

In conjunction with completing the transaction, Aktia and Taaleri have agreed on co-operation in terms of development, distribution, sales and marketing of new alternative investment products. With the transaction, both parties can concentrate on their core know-how, which in an efficient way will be available to both parties.

As part of the transaction, assets under management (AuM) amounting to EUR 4.4 billion will be transferred to Aktia according to Aktia’s reporting practice, which corresponds to EUR 7.1 billion according to Taaleri’s reporting practice. Aktia’s assets under management will thus increase from EUR 10.4 billion (31 December 2020) to EUR 14.8 billion. The transaction is expected to deliver significant synergy gains, which consist mainly of revenue synergies, reorganisation of functions and scale benefits including IT and other infrastructure. The synergy gains on an annual level are estimated to amount to EUR 8 million and they are expected to be realised in full during 2023.

“Combining Aktia and Taaleri’s wealth management business operations and the compatibility of the functions create value in several ways both for Aktia’s shareholders and customers as well as employees. Aktia’s asset management product offering will be expanded considerably, and we will have even better capabilities of serving our customers. The customers moving from Taaleri to Aktia will receive even more comprehensive services, including a wide range of banking services”, says Aktia’s CEO, Mikko Ayub.

“The essential thing with the transaction is also the co-operation agreement with Taaleri, which will give our customers access to successful alternative investment products while Aktia offers Taaleri a significant distribution channel. Aktia’s assets under management will increase significantly, which further strengthens Aktia’s position on the asset management market. Thus, the transaction is an important step towards our clear target of being the best asset manager in Finland”, Ayub concludes.

“Going forward, Taaleri is investing in renewable energy and other private equity funds that concentrate on alternative investments. We are already one of the leading Nordic actors that concentrate on private equity funds for renewable energy. With the help of the capital from the transaction and the persons transferring to Taaleri we can strengthen and extend our business operations even quicker. The co-operation with Aktia also opens a significant domestic distribution channel for us. The specialisation that the transaction enables will benefit customers, employees and owners”, says CEO of Taaleri, Robin Lindahl.

The completion of the transaction is subject to approvals by the Finnish Competition and Consumer Authority and the Financial Supervisory Authority (FIN-FSA) in accordance with applicable laws and regulation. It is estimated that the transaction will be completed in May 2021, provided that the approvals have been granted and the terms for completing the transaction are fulfilled.

Entities to be acquired

The companies being transferred to Aktia in conjunction with the transaction are not the Wealth Management segment that Taaleri is reporting on, but Taaleri’s wealth management business that also includes some other arrangements. The pro forma net commission income of the totality to be acquired was approximately EUR 31.0 (27.5) million for the accounting period 2020 (corresponds to a EUR 35.5 (31.9) million turnover in accordance with Taaleri’s reporting practice) and the operating profit was approximately EUR 10.1 (6.7) million.

In conjunction with the transaction, approximately 100 persons will move from Taaleri to Aktia and 5 persons working with real estate and infrastructure will move from Aktia to Taaleri.

The following companies are included in the transaction:

• Taaleri Wealth Management Ltd, an investment firm that operates under the supervision of Finnish Financial Supervisory Authority,
• Taaleri Fund Management Ltd, a fund management company that operates under the supervision of Finnish Financial Supervisory Authority,
• Evervest Ltd, a company that has built digital asset management solutions, and
• Taaleri Tax Services Ltd, that offers services related to taxation on owning and is an insurance intermediary that operates under the supervision of Finnish Financial Supervisory Authority.

Aktia Bank Plc

Board of Directors

Webcast for analysts and investors and press conference

Aktia is arranging an analyst and investor webcast on 10 March 2021 at 10.00 a.m. that can be viewed at the address https://aktia.videosync.fi/webcast-100321-10. The event is being held in English.

Aktia and Taaleri are arranging a press conference together on 10 March 2021 at 11.00 a.m. The event is a webcast that can be viewed at the address https://aktia.videosync.fi/webcast-100321-11. The presentation is being held in Finnish and the Q&A thereafter in Finnish and Swedish.

Further information:
Mikko Ayub, CEO
tel. [phone]

Interview requests:
Lotta Borgström, Director, Investor Relations and Communications
tel. [phone], lotta.borgstrom (at) aktia.fi

Distribution:
Nasdaq Helsinki Ltd
Mass media
www.aktia.com

Aktia is a Finnish asset manager, bank and life insurer that has been creating wealth and wellbeing from one generation to the next already for 200 years. We serve our customers in digital channels everywhere and face-to-face in our offices in the Helsinki, Turku, Tampere, Vaasa and Oulu regions. Our award-winning asset management business sells investment funds internationally. We employ approximately 830 people around Finland. Aktia's assets under management (AuM) 31 December 2020 amounted to EUR 10.4 billion and the balance sheet total was EUR 10.6 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com

 

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