AS LHV Pank and Danske Bank A/S have signed an agreement according to which LHV will acquire Danske Bank’s business unit operating the Estonian corporate and public sector credits, that as at the end of April amounted to approximately 312 million euros.
LHV Pank and Danske Bank have reached an agreement on the price of the transaction, according to which a discount of 19 million euros will be subtracted from the volume of the portfolio as calculated at the moment of the transaction. The transaction will be finalised in October of the current year and then the final scope and price of the transaction will also be determined. The volume of the portfolio is anticipated to amount to 280 million euros at the moment of finalising the transaction. The Competition Authority of the Republic of Estonia will have to grant permission before the transaction can be finalised. The agreed transaction is not a transaction between related parties.
The business unit acquired by LHV consists of the credit portfolio of Estonian corporate clients and the public sector, the volume of which is 312 million euros. About 42% of the portfolio consists of corporate loans and 54% consists of loans to local governments. According to LHV’s assessment, this is a strong credit portfolio with relatively low capital requirements for the loans involved with local governments. The business unit will be acquired with employees. The exact number will be determined when finalising the transaction.
With the transaction, LHV Pank will take over from Danske Bank the servicing of about 670 business clients and 85 public sector customers.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs over 460 people. LHV’s banking services are used by 219,000 clients, and pension funds managed by LHV have 178,000 active clients. Additionally, LHV’s UK branch offers banking infrastructure to more than 120 financial service providers, that in turn intermediate LHV’s payment services to their customers around the world.All news