Estonian banking group, LHV Pank AS together with RAZFin of Lithuania have agreed to purchase Snoro Lizingas UAB from bankrupt Lithuanian bank Bankas Snoras AB. The leasing company to be purchased is said to be worth 74 million litai or US$28 million.
The transaction would be subject to regulatory approval and is expected to be completed by the end of Juiy, as announced through an emailed statement from the Vilnius headquarters of Bankas Snoras quoting Neil Cooper, the bank's bankruptcy administrator.
Bankas Snoras was once the third largest bank in Lithuania in terms of deposits and is now under bankruptcy protection after the country's central bank took over its operations in November 2011. There were discrepancies in its balance sheet, forcing the Lithuanian central bank to take drastic action.
In an emailed statement from LHV CEO Erki Kilu, "We've long sought expansion options in the Baltic region but with trustworthy partners and a business of reasonable size. Snoras Leasing has a loan portfolio that makes up 6% of LHV Pank's balance sheet. This is a suitable size to start with."
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