Sistema, the Russian conglomerate, is planning to buy Honkarakenne Oyj, a Finland-based company that designs and builds wooden log homes.
As reported by The Dailymail following a regulatory note published on November 10, 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.
Sistema announced that is interested in buying Series A and Series B shares in Honka. At the moment, there are 0.3 million of Honka's Series A shares and 4.9 million of Series B shares, which means Sistema should pay around EUR 7.8 million for Honka shares, if the offer is accepted by the holders.
Sistema owns assets in various industries such as forestry, telecoms, and agriculture, and has been looking for new deals to diversify revenue streams further. Honka was a strategic fit for the conglomerate which controls Russian wood processing company Segezha Group, as Mikhail Shamolin, chief executive officer of Sistema, said.
The offer period is expected to commence close to Nov. 11, 2016 and will run for around five weeks.