TALLINN - A new buy-out offer by Swedbank helped win over Hansabank's minority shareholders last week and allowed the Swedish bank to boost its holding in Hansabank to 76.7 percent.
After meeting stiff resistance to its original offer of 11 euros per share last month, Forenings-Sparbanken (Swedbank), which at the time of the offer owned a majority stake, cranked up the price to 13.5 euros on March 22 just before markets closed. Hansabank Chairman Indrek Neivelt said all board members had decided to accept the offer, while Tiina Mois and Endel Siff, representatives of small shareholders on the bank's council who had originally resisted selling, also accepted the new offer.
Sticking to their opinion that Swedbank's complete takeover of Hansabank would bring no value to the bank, independent council members wrote in a notice to the Tallinn Stock Exchange that the revised offer was fair and contained a sufficient premium. "While fully understanding Swed-bank's business logic of the profitability of the takeover… it does not automatically mean profit to the bank. We find the potential synergies are small," the independent council members said.
The new offer, which was automatically applied retrospectively to those shareholders who had accepted the original offer, allowed Swedbank to acquire an additional 5.1 percent in Hansa-bank, thus increasing its total holding to 76.7 percent. Swedish bank officials said they intended to accumulate 90 's 95 percent of the Estonian bank, the largest in the Baltics.
Shares in Hansabank gained 9.13 percent over the week ending March 25, leveling at 211.23 kroons, or 13.5 euros apiece, the new price. The TALSE stock index climbed 8.06 percent to 605.92 points over the week on the back of boisterous trading on Hansa stock.
"Swedbank has certainly gotten Hansabank stock under control with its new offer, and it is only a matter of time and paperwork before it acquires the whole bank," Riho Talumaa, a broker from Suprema, told the Baltic News Service.
Investors selling out of Hansapank have been reinvesting funds in less-traded shares, a trend that traders expected to continue throughout this week up to April 1.
"I see a continuation of this trend of investors pulling out of Hansapank and buying minor stocks instead. This raises the ironic question of when will Klementi and (Tallinna) Farmaatsiatehas begin to be bought up," Uhispank trader Peeter Koppel said.
"With minor shares, in view of their poor liquidity, a bubble-like rise is to a certain extent justified. But I see the local market as risky and rather like a playground of speculators," he added.
Ultimately, however, Hansabank stock will be delisted from the Tallinn exchange, which has shareholders, brokers and exchange managers worrying how to make up the difference. Traditionally Hansabank has accounted for the lion's share of exchange turnover.
Swedbank's purchase offer will remain in effect until April 4.
