AS LHV Pank acquires the loan portfolio of Versobank AS
AS LHV Pank and Versobank AS (under liquidation), have on December 19 entered into an agreement, according to which AS LHV Pank will acquire the loan portfolio of Versobank AS for approximately EUR 18.4 million. The exact price will be determined as at January 1, 2019. The price is paid in a lump sum upon closure of the transaction.
The loan portfolio is acquired as a loan portfolio company, consisting of loan and collateral agreements and two employees related to the portfolio. The loan portfolio contains loans to Estonian companies in the amount of approximately EUR 17 million as well as loans to Estonian resident private customers in the amount of approximately EUR 3 million.
"We are actively seeking possibilities to grow our business. Increasing the loan portfolio is of critical importance for us in order to increase interest income and raise efficiency, given the existing cost base," said Erki Kilu, Chairman of the Management Board of LHV Pank. "Although, the loan portfolio of Versobank is not big, it is a well-secured portfolio with an interest rate that meets our expectations. Furthermore, acquisition of the loan portfolio gives us real experience of how the loan and collateral information systems work also in case of acquired agreements."
According to the concluded agreement, the acquisition transaction is to be closed presumably on January 28, 2019, and the precondition of the closure of the transaction is satisfactory results for AS LHV Pank of the loan portfolio audit.
The transaction can not be considered as a transaction between related parties.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. There are 380 people working at LHV and more than 159,000 clients are using its banking services. Pension funds managed by LHV have more than 178,000 active clients.
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