Honka takeover by Russian Sistema breaks down
The attempt by Russian Sistema through its subsidiary Sistema Finance to take over Finnish Honkarakenne (Honka) has failed. From the beginning of November 2016 until 25 January, Sistema had been offered only 192,866 of the B-series shares traded on the stock exchange, representing a 3.7% share in Honka’s total share package. Despite an extension of roughly one month to the offer deadline, this fell far short of Sistema’s self-imposed target of the acquisition of 67% of B shares, whereupon Sistema withdrew its offer of €1.50 per share.
Sistema, which has been active since 2014 in the forestry and wood industries, had recently announced its intention of going public via an IPO with Russian Segehza Group which is engaged in the paper and wood industries.