AS LHVGroup unit AS LHVVarahaldus finalized the acquisition of ' , followingreceipt of regulatory approvals.

The preliminary price of the acquisition is set at €11.0million, with a final price to be determined later, according to a May 2 press release.Subject to regulatory approval, Danske Capital will be transferred to LHVVarahaldus, which will be renamed Aktsiaselts LHV Varahaldus. The merger isexpected to be effective in the third quarter.

To fund the acquisition, which was agreed in , LHV Varahaldusincreased its share capital in February by about €8.2 million, while parent LHVGroup purchased subordinated bonds for LHV Varahaldus in the amount of €600,000.

LHV Group in April publicly offered 2 million shares at aprice of €6.95 apiece to institutional and retail investors in Estonia. Thesubscription period for the offer is from May 2 to May 16. The company, whichapplied to get all its shares listed on the Baltic Main List of the Nasdaq TallinnStock Exchange, expects trading to start on or about May 23.

LHV Group expects gross proceeds of €13.9 million and netproceeds of €13.7 million from the offering.