Ellex Raidla has advised AS LHV Pank on the acquisition of the loan portfolio of Versobank AS, which is under liquidation, for approximately EUR 18.4 million. The transaction is expected to close in late January, 2019.
According to Ellex, the loan portfolio is acquired as a company, consisting of loan and collateral agreements and two employees related to the portfolio. The loan portfolio contains loans to Estonian companies in the amount of approximately EUR 17 million as well as loans to Estonian resident private customers in the amount of approximately EUR 3 million.
"We are actively seeking possibilities to grow our business," said Erki Kilu, Chairman of the Management Board of LHV Pank. "Increasing the loan portfolio is of critical importance for us in order to increase interest income and raise efficiency, given the existing cost base. Although, the loan portfolio of Versobank is not big, it is a well-secured portfolio with an interest rate that meets our expectations. Furthermore, acquisition of the loan portfolio gives us real experience of how the loan and collateral information systems work also in case of acquired agreements."
The Ellex Raidla team was led by Partner Gerli Kilusk.
Editor's Note: After this article was published CEE Legal Matters learned that KPMG had advised Versobank on the deal. The firm's team consisted of Partner Karin Kaup and Associate Kadri Kasepalu.
