Banks, Financial Services, Investments, Lithuania, Technology, Telecomunications

The company has signed a contract with Swedbank on two loans, with the money going towards completion of Cgates acquisition deal and finance the company's investments, Swedbank said in a press release.

Danielis Klicmanas, CFO at Cgates, told BNS that part of the money would be directed towards the purchase of 63% of the shares in Starman, Cgates' operator, by Estonian businessman Indrek Kuivallik's company Polaris Invest from East Capital investment fund.

The deal was announced last December. After it is finalized, Polaris Invest and Com Holding, which owns 26% in the company, will become the sole shareholders of Starman. A loan for the 208-million-euro deal was then provided by Finland's telecommunications company Elisa, which purchased the Estonian branch of Starman.

Last week, Lithuania's competition watchdog cleared Baltic private equity fund Livonia Partners jointly with the Estonian bank LHV's pension fund and Skype's founders to invest in Cgates. The group of investors intends to purchase a new issue of Cgates shares, which will account for a 34.8% of the authorized capital.

Cgates last year posted consolidated sales of 19.5 million euros. The company has more than 270,000 subscribers in 18 towns and cities of Lithuania.