Swedish bank raises offer on Baltic banks

RIGA - Three more Baltic banks will fall completely into Swedish hands in the near future. Skandinaviska Enskilda Banken is expected to soon close buyout deals on three banks in the Baltic countries - Estonian Uhispank, Latvian Unibanka and Lithuanian Vilniaus Bankas.

SEB is already the major shareholder in all three but now is looking for full acquisition and has extended the deadline for purchase of Unibanka's and Vilniaus Bankas outstanding shares until Nov. 13 and Nov. 17 respectively. SEB is also planning to offer a higher price for those shares - from 1.90 lats ($3.05) to 2.05 lats for Unibanka shares and 50 litas ($12.5) instead of the original 40 litas for Vilniaus Bankas shares.

U.S. company High Bridge Services called for an emergency shareholders' meeting when SEB presented its first offer. HBS also handed in a petition to the Securities Market Commission on making a counter-offer. HBS has said publicly it will now sell its 9.9 percent stake for the new price. Other minority shareholders are expected to follow.

Mats Kjaer, president of SEB Baltic Holding, said the price SEB offers will suit every share holder of Unibanka.

"The small owners did not see it the way we did, and therefore we raised the bid," Kjaer said. "We want to offer a long-term responsibility for these three banks."

The securities market commission has received documents filed by SEB which confirms the price increase for the remaining Unibanka shares.

Viktors Gustsons, chairman of the securities market commission, told LETA that he expects a decision on the price increase this week.

The raise in prices concerns already sold shares and those which will be sold within the framework of the offer.

Uldis Cerps, president of Riga Stock Exchange, said he thinks SEB is willing to pay extra for having a branch office in each of the Baltic countries.

"It's a very natural process to raise the offered price if the first is not accepted," Cerps said.

Unibanka's shares account for 7 percent of the total volume trading in the stock exchange and 18 percent of the equity volume.

"The stock exchange's turnover will, statistically, go down by 18 percent if Unibanka's shares are delisted," Cerps said.

Spokesman for Unibanka, Haralds Burkovskis, said SEB will do everything possible to have Unibanka's shares delisted from the stock exchange.

Before SEB decided to increase their offer on Unibanka's shares, the bank group officially owned 50.15 percent of the Latvian bank.

"When we are fully incorporated in the SEB group, we will have access to all SEB services. This will mean a much better service for our clients," Burkovskis said. "I am sure this is a positive trend."

Over the first nine months this year, Unibanka has posted a 7.735 million lats profit. The bank's operational revenues made up 23.337 million lats for the same period, which is 3 percent more than last year.

SEB already controls more than 95 percent of Uhispank, and the bank is now fully incorporated in the SEB group. (See related stories on pages 17-18)