Baltic, Banks, Financial Services, Good for Business

"We are focusing on a long-term strategy. We will not be owners forever, we will leave at some point, this will happen in four to seven years. Our longest investments have lasted for slightly over 10 years," Nadim El Gabbani, senior managing director at Blackstone responsible for European investments, said.

He said that the most likely exit would be listing the company on several stock exchanges. "I think that before we think about exiting, the main thing is to focus on the activity of the bank," Gabbani emphasized. "Only once that bank is fully independent and its activity is what the management board wants it to be is there point to list. But first we must focus on the activity of the bank," he said.

Speaking about the bank's everyday business, Gabbani said that Blackstone will not come to head the company. "We will be partners of the team, assume an active position on the supervisory board and try to find resources in the company we have invested in. We very much support the strategy that Erkki [Raasuke, CEO of Luminor] and his team have. Luminor's aim to become the largest independent bank in the Baltic states is right," Gabbani said.

Nordic banks Nordea and DNB announced in mid-September that they will sell a 60% stake in Luminor, a bank operating in the Baltic states, to a consortium led by private equity funds managed by U.S. investment giant Blackstone with the volume of the transaction being one bn euros.

As a result of the transaction, Nordea and DNB will each hold approximately 20% of Luminor and maintain ongoing representation on Luminor's board of directors, Nordea said. Additionally, Blackstone has entered into an agreement with Nordea to purchase their remaining 20% stake over the coming years. DNB wishes to continue within the circle of owners.