Šiaulių Bankas and Invalda INVL are merging their retail business

On November 22, Šiaulių Bankas and Invalda INVL signed an agreement to merge segments of their retail businesses. After the transaction, Šiaulių Bankas Group, in addition to the financial services it already provides, will add the management of second and third pillar pension and investment funds in Lithuania to its portfolio and expand the life insurance business in the Baltic States. The life insurance business in Lithuania, Latvia and Estonia is expected to be integrated into SB Draudimas, a company controlled by the bank. The pension and investment fund business in Lithuania will be managed through a newly created company of Šiaulių Bankas Group.

“Šiaulių Bankas Group already has a strong position in the financial market. We are in an exceptionally strong position to provide high-quality coverage for our customers’ financial needs – we maintain the widest customer service network and develop digital solutions, enabling the best of both worlds for our customers to interact and receive financial services. By combining the teams of Šiaulių Bankas and INVL, which already have leading expertise in the retail financial business, we will move to the next stage in the development of a next-generation financial services provider. Customers will benefit from an integrated end-to-end offering covering a full range of services from a single source, flexibility to adapt to each customer’s needs and a financial partner that provides unique solutions. We have no doubt that the synergy of the experience of two strong Lithuanian businesses will increase the capacity to compete and create economic value for Lithuania,” says Vytautas Sinius, CEO of Šiaulių Bankas.

The created united team of professionals will actively develop the retail financial business. Šiaulių Bankas has the largest network of customer service points in Lithuania – it serves its customers in 56 branches in 37 Lithuanian cities. The combined retail business will include INVL Group’s 237.5 thousand retail clients and the management of EUR 1.04 billion of retail client assets (as of September 30, 2022), around 190 professionals in pension insurance, investment fund management and life insurance. Šiaulių Bankas Group employs over 850 financial services experts.

The value of the transaction is EUR 40.2 million. After the transaction, Invalda INVL will own an additional 62,270,383 Šiaulių Bankas shares, representing 9.39% of Šiaulių Bankas’ shareholding. Šiaulių Bankas will issue the new shares, which will be acquired by the Invalda INVL group, at EUR 0.645 per share (5% more than the bank’s share price on November 22 on Nasdaq Vilnius).

The Board and Supervisory Board of Šiaulių Bankas and its Audit Committee took the necessary decisions to approve the transaction on November 22, 2022.

The transaction is expected to be completed within one year, subject to the receipt of the necessary approvals from the banking supervisory authorities and the competition supervisory authorities, the adoption of the necessary resolutions by the extraordinary meetings of the shareholders of Šiaulių Bankas and Invalda INVL and the implementation of the other conditions specified in the contract.

As the reference date of the transaction is June 30, 2022 and is expected to be completed within one year, the transaction price may be subject to adjustments on the closing date.

Following the completion of this and other announced planned share acquisition transactions, Invalda INVL Group will increase its shareholding in Šiaulių Bankas from the current 8% to approximately 20%.

Šiaulių Bankas will invite all shareholders, investors, analysts and any interested party to the presentation of the deal in the coming weeks with a separate announcement.

More information:
Thomas Warenberg
Director of Cashiers and Markets
[email protected], +370 5 203 22 00

Leave a Comment

Your email address will not be published. Required fields are marked *