29 September 2010 - Finnish insurer Pohjola Insurance Ltd has agreed to pay EUR80m in cash to acquire local sector player Pohjantahti Mutual Insurance Co, the companies announced today.
The consideration, offered to Pohjantahti shareholders includes the amount payable to the policyholder-shareholders and the holder of the guarantee capital, Finland-based Ilmarinen Mutual Pension Insurance Co.
The transaction, subject to approval by extraordinary general meetings of both companies and relevant regulatory bodies, is scheduled to be completed in April 2011.
Upon completion of the merger, Pohjantahti's insurance portfolio and agreements would transfer to Pohjola Insurance. The transaction will strengthen the combined entity competitiveness in the Finnish non-life insurance market, and will enhance its growth potential and profitability.
Currently, Pohjantahti is headquartered in Hameenlinna, southern Finland, where Pohjola intends to set up service centre and to hire 50 employees.
Pohjola Insurance, a subsidiary of Finnish Pohjola Bank Oyj (HEL: POH1S), approached Pohjantahti's board of directors with a merger bid in February 2010.
(EUR1 = USD1.4)
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