10.03.2021
TAALERI PLC INSIDE INFORMATION 10 MARCH 2021 AT 8:00 EET
Taaleri sells its wealth management operations to Aktia, beginning a cooperation that supports both companies’ strategies – Taaleri to focus on private equity funds concentrating on alternative investments in future
On March 10, 2021, the financial services company Taaleri Plc (“Taaleri”) signed an agreement to sell its wealth management operations to Aktia Bank Plc (“Aktia”). The divested operations will be sold at its enterprise value of EUR 120 million. In addition, Taaleri will receive the net cash of the divested operations, which amounted to circa EUR 10 million at the end of the financial year 2020. In the future, Taaleri will focus on private equity funds concentrating on renewable energy and other alternative investments.
As part of the transaction, the companies agree to a cooperation that supports the strategies of both companies, in which Aktia will sell Taaleri’s alternative investment products to its customers. The cooperation will provide Aktia’s customers with access to Taaleri’s wide and diverse range of alternative investment products, as well as expand Taaleri’s domestic distribution channel to over two times its current size. In addition, the new entity offers Taaleri’s existing customers a wider range of investment products as well as comprehensive banking services, life insurance products and financing solutions. Taaleri will continue to offer its alternative investment products directly to its largest institutional clients as well as to international investors.
The divested business is to be sold at its enterprise value (excluding liabilities and cash) of EUR 120 million, of which a maximum of EUR 10 million may be paid in new Aktia shares, and the remainder will be paid in cash at the close of the transaction. As stated by the transaction agreement, Taaleri’s wealth management operations will transfer to Aktia, including Taaleri Wealth Management Ltd, Taaleri Fund Management Company Ltd, Taaleri Tax Services Ltd and Evervest Ltd; businesses with an estimated combined turnover of EUR 35.5 million and estimated operating profits of EUR 10.1 million in 2020. In the transaction, approximately 100 employees of Taaleri will be transferred to Aktia, and five employees of Aktia’s real estate and infrastructure business will shift to Taaleri. Furthermore, Taaleri will acquire business operations for the portfolio management of Aktia’s special investment fund investing in real estate as well as the Aktia Infra I Ky fund. The agreement also stipulates that Taaleri will act as the portfolio manager for Aktia’s special investment funds investing in real estate in the future.
“Cooperation with Aktia is an important part of our arrangement. We believe the cooperation will bring significant synergy benefits, as it will widen Taaleri’s distribution channel to over two times its current size,” says Robin Lindahl, CEO of Taaleri. “Taaleri is one of the leading players in the Nordics focusing on private equity funds investing in renewable energy. Through the capital from the transaction and the people moving from Aktia to Taaleri, we will be able to strengthen and expand our business even more rapidly. Customers, investors, personnel and owners all stand to benefit from the specialisation made possible by this transaction.”
“Combining Aktia’s and Taaleri’s wealth management business operations and the compatibility of the functions create value in several ways both for Aktia’s shareholders, customers as well as employees. Aktia’s asset management product offering will be expanded considerably, and we will have even better capabilities of serving our customers. The customers moving from Taaleri to Aktia will receive even more comprehensive services, including wide-ranging banking services,” says Mikko Ayub, CEO of Aktia. “An essential part of the arrangement is the cooperation agreement that supports the strategies of both companies, giving our customers access to Taaleri’s successful alternative investment products. Moreover, the value of Aktia’s assets under management will increase substantially, further strengthening our position in the asset management market.”
Following the sale of its wealth management operations, Taaleri Plc will be comprised of its private equity fund business, which consists of the energy, real estate and bioindustry businesses; and Garantia Insurance Company, which provides guarantee solutions. Taaleri is preparing to announce its revised business strategy in March, and it will organise a Capital Markets Day for analysts and institutional investors on March 23, 2021.
The completion of the transaction is subject to the approvals issued by Finnish Competition and Consumer Authority and Financial Supervisory Authority (FIN-FSA) which are required by applicable laws and regulation. It is estimated that the transaction will be completed in May 2021, provided that the approvals have been granted and the terms for completing the transaction are fulfilled. Upon the completion of the transaction, Taaleri will seek to release capital to shareholders with an additional dividend.
Taaleri Plc
Board of Directors
Media conference on March 10, 2021 at 11:00 a.m.
Taaleri and Aktia will organise a media event on Wednesday, March 10, 2021 at 11:00 am as a webcast, which can be viewed at https://aktia.videosync.fi/webcast-100321-11. The presentation will be held in Finnish and the Q&A thereafter in Finnish and Swedish.
Further information:
Robin Lindahl, CEO of Taaleri, with requests for interview through the company’s communications officer, Siri Markula, Head of Communications and Investor Relations, 358 40 743 2177, siri.markula@taaleri.com
Taaleri in brief
Taaleri is a Finnish financial services company, whose parent company, Taaleri Plc, is listed on Nasdaq Helsinki main market. The Taaleri Group comprises three business areas: Wealth Management, Insurance, and Energy. In addition, the Group makes investments from its own balance sheet. At the end of 2020, Taaleri had assets under management totalling EUR 7.6 billion and over 6,000 wealth management customers. Taaleri Plc has some 6,000 shareholders. Taaleri’s operations are supervised by the Finnish Financial Supervisory Authority.
More information about our company and services:
www.taaleri.com/en
www.taalerivarainhoito.com/en
www.taalerienergia.com
www.taalerikapitaali.com/en
www.garantia.fi/en
Siri Markula, Head of Communications and IR, tel. 358 40 743 2177, siri.markula@taaleri.com