LHV Group will sell its share in UAB „Mokilizingas“
The Supervisory Board of AS LHV Group has approved the offer made by AS Inbank to acquire 100% of UAB „Mokilizingas“ shares from its current shareholders for the amount of EUR 15 million.
AS LHV Group currently owns 50%+1 share of UAB „Mokilizingas“, however the offer has been also approved by UAB „Inovatyvūs prekybos sprendimai“, that holds the rest of UAB „Mokilizingas“ shares.
The value of the shares held by LHV amount to EUR 7.5 million.
The share purchase agreement was signed today (20 April 2018) and the transaction will be finalized before 31 May 2018. During a period of 12 months, AS LHV Pank will continue providing credit to UAB “Mokilizingas” and also will ensure the functioning of UAB “Mokilizingas” credit cards until the end of 2019 based on the current conditions. Otherwise, the contractual obligations correspond to the usual conditions regarding similar transactions.
The planned transaction will not be considered a transaction between related persons.
The sales transaction will earn AS LHV Group an extraordinary profit of EUR 3 million, thus AS LHV Group plans to review its Financial plan for 2018 and disclose the renewed Financial plan on 17 May.
Mokilizingas is a leading consumer finance services provider in Lithuania with the second largest market share of 40% in the hire-purchase segment. The company has in Lithuania over 2000 partners, approximately 250 thousand customers and over 100 thousand active contracts. In addition to Lihthuania, Mokilizingas also services strategic partners in Latvia.
Comments by Madis Toomsalu, CEO of LHV Group: „Mokilizingas is a well-functioning profitable company, however we decided to accept the offer on basis of the change in LHV’s strategic vision. Besides our domestic market in Estonia, our main focus has been set on servicing financial intermediaries in London. When it comes to Inbank we are dealing with a bank offering consumer financing, that is capable of generating more added value from Mokilizingas using its focused product portfolio and enlargement strategy.”
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are AS LHV Pank and AS LHV Varahaldus. LHV employs over 360 people and over 135,000 customers use LHV’s banking services. Pension funds managed by LHV have over 176,000 active customers.
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