AS LHV Group founds the subsidiary LHV UK Limited
Today, on 4 February 2021, a subsidiary of AS LHV Group, private limited company LHV UK Limited was registered at Companies House in the United Kingdom.
After establishment, the company will start applying for a banking (credit institution) licence in the United Kingdom. Subject to the company obtaining the required regulatory approvals, the plan is to form a standalone bank located in the United Kingdom, with the aim of creating clearer distinction between the business activities of AS LHV Group in Estonia and the United Kingdom. So far, AS LHV Pank has operated in the United Kingdom via a branch entity.
The total share capital of LHV UK Limited is GBP 2,500,000, which is divided into 2,500,000 shares with a nominal value of GBP 1. All shares belong to AS LHV Group. The new company is a subsidiary of AS LHV Group, and belongs to the LHV consolidation group.
In 2021, LHV UK Limited will prepare the required documentation for licensing the bank's activities and submit them to the supervisory authorities. From establishing the company to obtaining the authorisation, LHV UK Limited will bear the costs and generate a loss. AS LHV Group will publish the financial forecast for the subsidiary after receiving the authorisation.
LHV UK Limited has one board of directors. Initially, Madis Toomsalu (Chairman), Erki Kilu, and Andres Kitter belong to the board of directors of the company. The Chief Executive Officer of the company is Erki Kilu.
- Madis Toomsalu is a Member of the Management Board of AS LHV Group, the Chairman of the Supervisory Boards of AS LHV Pank, AS LHV Varahaldus and AS LHV Kindlustus, and is a Member of the Supervisory Board of AS LHV Finance. He is also Member of the Management Board of MTÜ FinanceEstonia. He has worked at LHV since 2007, operated as the credit manager of LHV Pank since 2012, and worked as the CEO of LHV Group since 2016. Madis Toomsalu and the persons related to him own 53,819 shares of AS LHV Group. Madis Toomsalu has the right to acquire a total of 90,920 shares of AS LHV Group based on options issued in 2018, 2019 and 2020.
- Erki Kilu is the Chief Executive Officer of LHV UK Limited. In addition, he is a Member of the Supervisory Boards of AS LHV Varahaldus and AS LHV Kindlustus. Erki Kilu has been employed at LHV since 2008. Erki Kilu holds 100,036 shares of AS LHV Group. He has the opportunity to acquire a total of 87,214 shares of AS LHV Group for the options issued in 2018, 2019 and 2020.
- Andres Kitter has been a Member of the Management Board of LHV Pank since 2013. Andres Kitter is not a member of the governing bodies of any other company. Andres Kitter holds 30,337 shares of AS LHV Group and has the right to acquire a total of 49,692 shares of AS LHV Group based on options issued in 2018, 2019 and 2020.
LHV announced its intention to establish a bank at the United Kingdom with a stock exchange announcement on 23 October 2020. Establishing the bank is a subject to regulative approval.
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