Icelandic lender Kaupthing Bank said Wednesday it bought the Dutch merchant bank NIBC Holding for 2.99 billion euros ($4.06 billion).
Kaupthing will sell 110 million new shares worth 115.38 Swedish kronor ($16.74; 12.37 euros) each for an aggregate value of 1.36 billion euros ($1.85 billion). The company also said it will pay 1.63 billion euros ($2.22 billion) in cash through existing resources, an issue of unidentified securities, and issue 40 million new shares through a rights issue.
NIBC is presently owned by a consortium of shareholders led by J.C. Flowers & Co., Kaupthing said in a statement.
Kaupthing said the expected acquisition will allow it to further diversify and strengthen its existing operations. It will also make it one of the leading corporate and investment banks focusing on financial services to small- and medium-sized enterprises in Europe.
NIBC offers corporate finance, banking and investment management solutions to corporate clients, financial institutions, institutional investors and family offices, Kaupthing said.
Kaupthing shares dipped 0.9% to 114.75 kronor ($16.64; 12.30 euros) in Stockholm.