Banks, Estonia, Financial Services, Investments, Legislation, Lithuania, Loan

Neil Cooper, bankruptcy administrator of BAB bankas Snoras (bankrupt), today confirms that an agreement has been reached over the sale of Snoro Lizingas shares to AS LHV Group, one of Estonia's largest banks and its partner RAZFin, an investment company controlled by Rakauskai family and investment group Zabolis Partners. The transaction will complete once the necessary approvals from the Competition authorities have been obtained and other closing conditions have been fulfilled, the administrator said in a statement.

Snoras Lizingas offers in Lithuania installment loans, small loans and leasing. The loan portfolio of Snoras Lizingas amounts to around 20 million euros. The loan portfolio of Snoras Lizingas will be financed by LHV Pank.

"We have for a long time looked for expansion possibilities in the Baltic states direction but together with trustworthy partners and reasonably sized business" said LHV Pank board chairman Erki Kilu. "Snoras Lizingas has a loan portfolio that forms 6% of LHV Pank asset volume. That is the right size to start from."

The method and main terms of the sale were approved by the bank Snoras Creditors' Committee and both parties are now aiming to complete the sale by the end of July 2013. Snoro Lizingas will be sold for total consideration of LTL 74 million (EUR 21.5 million) and further details will be provided once the sale completes.

The transaction has to be approved by the Competition Board.