A largest Lithuanian-owned bank Siauliu bankas and Invalda LT on the 7th of March, 2015 have signed a Letter of Intent which foresees a possible integration of Finasta banking business with Siauliu bankas.
Once the deal is closed, Siauliu bankas would take over Finasta banking business and the current Finasta owner – one of the largest companies in Lithuania investing in other businesses and managing assets Invalda LT – would acquire a new Siauliu bankas share issue, which would be issued in order to pay for the bank Finasta shares. Invalda LT would continue to own 100 percent of pension and investment fund management company Finasta Asset Management.
The valuation of the deal will be revealed once the parties sign a binding agreement – this should be agreed by the April 15th, 2015.
“Finasta banking business integration with Siauliu bankas would strengthen capital markets services, investment and savings products and private banking, providing a wider range of services and adding value to our clients”, -Siauliu bankas’ CEO Vytautas Sinius said.
“We are concentrating on our main asset management business. One need scale in order to compete in classical banking and this deal provides this scale. Siauliu bankas is a very competitive bank with a successful growth profile so we chose to invest into this NASDAQ Vilnius listed bank, owned by European Reconstruction and Development Bank and local investors”, – Invalda LT president Darius Sulnis said.
Bank Finasta chairman of the board Andrej Cyba said that merged bank Finasta and Siauliu bankas competences and experience will allow the clients of both banks to get the highest quality services and wider range of products.
In order to close the deal, relevant permissions from the Bank of Lithuania and other institutions are needed, as well as Siauliu bankas shareholders’ decision on a new share issue and other actions related to this.
The brand name Finasta will remain within Invalda LT group. Wealth management services, which are currently provided by bank Finasta will continue to be provided through a financial brokerage company which is owned by Invalda LT.
The shares of both companies – Siauliu bankas and Invalda LT – are listed on NASDAQ Vilnius exchange.
Siauliu bank is focused on providing financial services to small and medium size enterprises and private clients. The customer service network of the bank consisted of 74 service units, the bank has more than 350 thousand clients. At the end of 2014 more than 65 percent of bank’s capital was owned by Lithuanian persons and legal entities and the bank was the fourth largest bank by deposits and loans in Lithuania.
Invalda LT is one of the largest companies in Lithuania investing in other businesses and managing assets. At the end of 2014 Invalda LT-owned asset management companies MP Pension Funds Baltic and Finasta Asset Management in Lithuania and Latvia served 161 thousand clients and managed assets of 275 million euros in pension, investment funds and discretionary portfolios.