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Sunday 18.03.2018 | Name days: Ilona, Adelīna

Prime Minister: Citadele’s selling price is 98.67 million

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe selling price of the state owned Citadele Bank is EUR 98.67 million, as revealed by Latvian Prime Minister Laimdota Straujuma.

In her interview to Rīta Panorāma programme of LTV, Straujuma admitted that the European Commission has confirmed that the selected investor is a good one. This is why it has been decided to cancel the final deadline for the submission of binding offers (September 3oth). The Latvian government has been given green light to continue talks with investors in regard to Citadele’s sale. Talks may continue for two more weeks.

Straujuma notes that conditions cannot be discussed due to confidentiality. They are related to the order of reception of funding – it is expected that the investor will perform one big payment.

Restrictions in regard to the bank’s sale have also been discussed. Straujuma also noted the restriction to sell shares of Citadele bank in the next five years. She did not reveal any future sale restrictions for the bank’s shares. The Latvian PM added that conditions will also contain requirements for future buyers of the bank, so that they become investors that are ‘as good as the current ones’.

Investors are prepared to sign the contract now, but Latvian government requires time ‘to maintain its requirements’. The bank’s sale needs to be finished by the end of the year. Citadele Bank is expected to be handed over to the new investor by the end of March 2015.

As it is known, the Latvian government has accepted the offer extended by the American Ripplewood Holdings for the sale of Citadele Bank. This offer provides for the sale of 25% of shares to Ripplewood Holdings. 50% of shares will go to so far publicly unknown investors and 25% will remain in the ownership of European Regional Development Bank.

According to information from LETA, one of the American investors who plans to purchase Citadele shares is the former head of the American Federal Reserve System Paul Volcker.

ERDB had previously expressed support for the Latvian government’s decision to sell Citadele to Ripplewood Holdings.

EBRD Director for business in Central and Eastern Europe, Jean-Marc Peterschmitt believes that this sale can be considered a big accomplishment for the bank and the country. Citadele Bank is a financial institution of one of the most rapidly growing economies in Europe. Its stable business model and high corporate management standards have attracted a leading investor who has confirmed his long-term interest for the bank, he writes.

EBRD’s representatives also added that the bank plans to retain the shares of Citadele Bank currently in its ownership in the next phase of Citadele’s development.

The Latvian government currently owns 75% minus one share of Citadele Bank. 25% of shares are owned by EBRD.


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