(Adds background, Milton exec quote) June 22 (Reuters) -...

(Adds background, Milton exec quote)

June 22 (Reuters) - Australian investment firm Washington H. Soul Pattinson and Co Ltd (SOL) (WHSP) said on Tuesday it would buy peer Milton Corp (MLT) to create a combined company with nearly A$11 billion ($8.29 billion) in market capitalisation.

WHSP's offer of A$6 per share values Milton at A$4.05 billion ($3.05 billion), and is at a 20% premium to the stock's last closing price.

Under the deal, Milton shareholders will get three fully franked dividends totalling 52 cents per share, WHSP said.

"The Independent Board Committee has considered the offer and determined that this merger creates compelling value for our shareholders," said Graeme Crampton, chair of Milton's Independent Board Committee.

The deal comes just months after WHSP scrapped its buyout bid for old-age home services provider Regis Healthcare (REG) .

($1 = 1.3263 Australian dollars)