Merger of AS LHV Varahaldus and Danske Capital AS enters into force
The merger of AS LHV Group’s subsidiary AS LHV Varahaldus (the receiving company) with Danske Capital AS (the transferring company) has entered into force. The merger was entered in the Commercial Register on 28 July 2016. The receiving company continues to operate under the name of Aktsiaselts LHV Varahaldus. As a result of the merger, the operations of Danske Capital AS are deemed to have been terminated, with AS LHV Varahaldus becoming its legal successor. The balance sheet date of the merger was 1 May 2016.
Following the merger, AS LHV Varahaldus manages eight mandatory and three supplementary pension funds. The pension funds with similar investment strategies are planned to be merged in the future. According to the data of Pensionikeskus (Pension Centre), the market share of AS LHV Varahaldus by volume is 30.6% on the mandatory pension fund market and 9.8% on the supplementary pension fund market. AS LHV Varahaldus also manages two UCITS funds which will be merged on 31 August 2016. AS LHV Varahaldus also provides an investment management service for one UCITS.
“The merger of the management companies means a reduction in the management fee for second-pillar fund clients, since the fee depends on the total volume of second-pillar funds,” explained Mihkel Oja, CEO of AS LHV Varahaldus. “From February, the management fee on the two biggest Danske funds will drop by about 20% more than it would have without the merger. The merger of the companies and later on, of some of the funds, shall make fund management also more effective. All of the processes related to the merger of the management companies went according to plan, and in fact were completed a little ahead of schedule.”
The Financial Supervision Authority approved the merger on 19 July 2016. The purchase of Danske Capital AS was finalized on 2 May (Market announcement).
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