TALLINN - Shareholders in LHV Varahaldus (LHV Asset Manage-ment) and Seesam Varahalduse AS (Seesam Asset Management) signed agreements on July 19 aimed at consolidating the two companies' managing investment funds in Estonia.
"In accordance with the agreements, LHV Asset Management will acquire 100 percent of the shares in Seesam Asset Management, and Seesam Life Insurance [will acquire] 34 percent of the shares in LHV Asset Management," the companies announced.
"With six pension funds, the merged company will be equal to the largest asset manager in Estonia and fourth in terms of the size of its pension fund assets, being the largest non-bank pension fund manager here," Tonno Vahk, board chairman of LHV Asset Management, said.
He added that the merger would provide for more effective management of pension fund assets and a broader and more diverse range of services for clients.
There will be no changes from the customer's point of view in the activity of the pension funds managed by the companies.
The merger is subject to approval by the Financial Supervision Authority.
Seesam Asset Management boasts ABN AMRO, one of the world's leading banking and asset management groups, as its investment partner.
LHV Asset Management is a company of the LHV investment banking group.