Russia's Sistema makes offer for Finnish maker of Honka homes
03/11/2016 10:20
MOSCOW, Nov 3 (Reuters) - Russian conglomerate Sistema
SSAq.L plans to buy Honkarakenne Oyj HONBS.HE , a
Finland-based company that designs and builds wooden log homes,
a Sistema unit said on Thursday.
* Sistema Finance, a subsidiary of Sistema, will make a
voluntary public tender offer in cash to buy all shares in
Honkarakenne at 1.50 euros ($1.67) apiece, it said in a
regulatory note published on Thursday.
* Sistema said it wanted to purchase Series A and Series B
shares in Honka. There are currently 0.3 million of Honka's
Series A shares and 4.9 million of Series B shares. This
suggests Sistema could pay around 7.8 million euros ($8.7
million) for Honka shares, should all their holders accept the
offer.
* Sistema, majority-owned by Russian billionaire Vladimir
Yevtushenkov, owns assets in various industries such as
forestry, telecoms, and agriculture, and has been looking for
new deals to diversify revenue streams further.
* Mikhail Shamolin, chief executive officer of Sistema, said
Honka was a strategic fit for the conglomerate which controls
Russian wood processing company Segezha Group.
* "Honka is commercially active across developed markets
globally, and this will provide us with access to new markets,"
Shamolin said.
* Sistema had resources to invest in the development of the
Honka business, he added.
* The offer period is expected to commence close to Nov. 11,
2016 and will run for around five weeks.
($1 = 0.9009 euros)
($1 = 0.9012 euros)
(Reporting by Maria Kiselyova; Editing by Andrey Ostroukh and
Susan Fenton)
((maria.kiselyova@thomsonreuters.com; +7 495 775 1242; Reuters
Messaging: maria.kiselyova.thomsonreuters.com@reuters.net))
Keywords: SISTEMA HONKARAKENNE/M&A