Iceland's second-largest bank, Landsbanki Islands HF, has agreed to buy independent UK stockbroker Teather & Greenwood Holdings in a deal valuing Teathers at approximately GBP42.8 million.
The two companies have agreed the terms of a recommended cash offer for the entire issued, and to be issued, share capital of Teathers not already owned by Landsbanki. It is intended that, upon completion of the offer, Teathers will continue to function independently as part of the Landsbanki Group.
The offer is GBP0.75 in cash for each Teathers Share and values the entire issued share capital of Teathers at approximately GBP42.8 million. The offer represents a premium of approximately 48.5% to the closing price of GBP0.50 for each Teathers share on 25 January, 2005, the last business day before the offer was made.
Teathers’ directors have reported that they consider the terms of the offer to be fair and reasonable and will unanimously recommend the offer to Teathers shareholders.
Landsbanki believes that the acquisition will enhance Teathers’ offering to its clients, help Landsbanki develop its international investment banking offering and further diversify Landsbanki’s income streams.
Commenting on the offer, the group managing directors and co-CEOs of Landsbanki, Halldor Kristjansson and Sigurjon Arnason, said: We are delighted that the directors of Teathers will recommend our offer. The acquisition of Teathers will be a significant milestone in our international expansion strategy.