AS LHV Pank agreed to acquire Estonian peer Versobank AS' loan portfolio for approximately €18.4 million, with the exact price to be determined on Jan. 1, 2019.
The portfolio is acquired as a loan portfolio company comprising roughly €17 million in loans to Estonian companies and around €3 million in loans to local resident private customers, as well as two employees related to the portfolio.
The deal, which LHV Pank noted cannot be considered as a transaction between related parties, is expected to complete Jan. 28, 2019. The payment will be made as a lump sum upon closure of the transaction, subject to satisfactory audit of the loan portfolio by LHV Pank.
In March, the European Central Bank withdrew Versobank's operating license over compliance failings.