bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 18.03.2019 | Name days: Ilona, Adelīna
LatviaLatvia

Blackstone foundation becomes Luminor Bank’s strategic investor

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUBlackstone Group L.P investment fund has become the strategic investor for Luminor Bank. This fund’s investment is EUR 1 billion, as reported by the bank.

As part of the deal, Blackstone will purchase 60% of Luminor Bank’s shares and become a majority shareholder alongside Nordea Bank and DNB Bank ASA, which own 20% each. At the same time, Blackstone and Nordea Bank have signed an additional deal on the sale of Nordea’s 20% of shares in Luminor Bank in the next twelve months.

It is planned to follow up on this deal in the first half of 2019, after receiving approval from European Central Bank and local supervisory institutions.

Luminor Group council chairman Nils Melngailis said that Blackstone is the world’s leading partner in the management of transformation of large companies.

According to him, Blackstone’s participation will ensure gradual growth for the bank, as well as introduce world standards and knowledge in customer service to accomplish Luminor’s goal – become an independent financial services group in the Baltic region.

Melngailis also mentioned that this deal represents the entry of a major investment player to the region. «This is proof and a strong signal for stable economic growth and beneficial investment environment in Baltic States. As the biggest private capital deal of recent years in in Baltic States, Blackstone’s decision to invest in Luminor proves that our chosen strategic direction is correct. Luminor’s long-term plan is becoming a business registered with the stock market,» he said.

Luminor Group manager Erkki Raasuke stresses that customer service will remain a priority for the bank. On top of that, the new strategic investor will also provide many advantages for clients and Luminor team over the course of the next year.

«There is no other local financial service provider with an independent management that provides service in all Baltic States. Our cooperation with Blackstone will help strengthen this position is secure Luminor the necessary capital for investments to help develop digital offers and expand the assortment of products and services,» he said.

Raasuke also added that Blackstone has an international reputation for hiring people talented in business.

Blackstone senior CEO Nadim El Gabbani says this is an exciting opportunity to invest in a company that is active on an attractive market. «We believe Luminor has a good position to continue being a truly independent financial service provider and the leading player on the market. We are happy to cooperate with the management of Nordea Bank and DNB and we hope to continue this cooperation to form a stronger platform for future growth,» he said.

At the beginning of October 2017, Nordea Bank and DNB decided to combine their business activities in Baltic States by founding Luminor Bank. In Latvia, Nordea Bank’s office in the country handed over assets to DNB Bank, which later changed its name to Luminor Bank. Asset-wise, this bank was the second largest bank in Latvia at the end of June.

In March 2018, Luminor Bank branches in Latvia, Lithuania and Estonia signed a merge deal. The cross-border merge provides that Luminor Bank offices working in Latvia and Lithuania will join the Estonian branch. After the deal, Estonian Luminor Bank will work in Latvia and Lithuania through branch offices.


Leave a reply

Latvian prime minister urges sorting the system, not raising taxes

A number of sectors require reforms to avoid raising taxes to increase revenue, said Latvian Prime Minister Krišjānis Kariņš during a meeting of Saeima’s Budget and Finance Committee on Monday, 18 March.

Stoltenberg calls NATO the most successful alliance in world history

NATO is the strongest, most successful alliance in history, wrote NATO’s Secretary General Jens Stoltenberg in an article dedicated to the expansion of the North Atlantic Treaty Organization.

Heavy rainfall in Indonesia causes floods and landslides; death toll reaches 77

Approximately 77 people have been killed in mountain villages hit by floods and landslides caused by intense rainfall in Indonesia’s Papua Province, according to the latest information reported by Indonesian authorities.

Number of job vacancies in Latvia up 33.4% in 2018

In 2018, there were 22.7 thousand job vacancies in Latvia, which is 5.7 thousand vacancies or 33.4 % more than in 2017.

Swedbank: more than 1,400 Latvian families purchased property in regions last year

In 2018, Swedbank had issued more than 1,400 loans for property purchases within 50 km radius around Riga. This is an average of six loans issued every work day, as reported by Swedbank representative Jānis Krops.

Minister: Latvia may require radical image change because of finance sector’s problems

Considering the problems in the country’s finance sector, it will be necessary to work on radically changing the country’s image, says Latvian Foreign Affairs Minister Edgars Rinkēvičs.

Riga Mayor’s wife suspected of dubious employed in public water supply company

For eight years Riga Mayor Nils Ušakovs’ office manager Iveta Strautiņa-Ušakova worked as a consultant for municipal water supply company Rīgas Ūdens, as reported by LTV investigative journalism programme De Facto.

Latvian Centre Party to take part in European Parliament elections

A list of candidates compiled by Centre Party from Latvia has been submitted for European Parliament elections. The list is composed of fifteen candidates. This makes it the fifth list of candidates to be submitted for EP elections in Latvia so far, as reported by Central Election Commission.

Air temperature in Latvia to stay positive this week; more precipitation expected

Weather will be dominated by cyclone activity this week. Wind speed will also increase in the country’s western parts in the first half of the week. At the end of the week, air temperature to become chilly at night, as reported by Latvian State Environment, Geology and Meteorology Centre.

Week in Lithuania. N-plant invites bids for repository construction contract

Lithuania's Ignalina Nuclear Power Plant, which was shut down a decade ago and is now being decommissioned, invited bids for the construction of a 100-million-euro near surface repository for low and intermediate level short-lived radioactive waste.

BNN summary of the week: when is Brexit? Estonia’s government worries; more problems with Rīgas satiksme

BNN offers a summary of this week’s topical news in a variety of categories: Attempt; Decision; Investigation; Scandal; Legislation; Expectation.

Suspect in criminal case leaves post in Alkom-Trans

SIA Alkom-Trans chairman Aleksandrs Krjačeks, who is a suspect in a criminal case regarding SIA Rīgas satiksme’s procurements, has decided to step down, according to information from Lursoft.

Eurostat: Latvia had higher annual inflation than average in EU and Eurozone

In February 2019, Latvia’s inflation was higher than the average in European Union and Eurozone, according to data published by Eurostat on Friday, 15 March.

Harmony and New Harmony to compete for seats in European Parliament

Association of parties Alternative Party, which received only 0.34% support from voters in the recent Saeima elections, has decided to start in upcoming European Parliament elections with a new name – New Harmony, as reported by Latvijas Radio.

ABLV Bank’s liquidators recover assets worth EUR 37.938 million in February

In February 2019, liquidators of ABLV Bank had successfully recovered assets worth EUR 37.938 million, which is 21% less than a month prior, according to the annual account published in Latvian Herald.

Polish Catholic church reveals mass child sex abuse by clergy

The administration of the Polish Catholic Church has stated it has since 1990 registered child sex abuse affecting 625 underage victims by 382 clergymen. Poland's Catholic Church authorities revealed the data on Thursday, March 14.

Insurer: children receive 11% more injuries during school breaks

During school breaks the frequency at which children receive injuries is 11% higher when compared to the year’s average, according to data from BTA Baltic Insurance Company.

Survey: one-fifth of Latvian residents do not protect their data on mobile phones

Although modern smartphones have several security options that help protect user data, results of a survey by Samsung Electronics Baltics show that 19% of Latvian residents do not use any of those data protection options.

Estonia's Ratas rejects Verhofstadt's opinion on coalition with anti-migrant party

Belgian member of the European Parliament, Guy Verhofstadt, who heads the parliament's Alliance of Liberals and Democrats for Europe group, has urged acting Estonian Prime Minister Jüri Ratas not to build a government coalition with the anti-migrant Conservative People's Party of Estonia.

Opinion: Baltic residents have cooled down towards Russian-Ukrainian conflict

Ever since the annexation of the Crimean Peninsula five years ago it seems a ‘cooling process’ has begun among residents of Baltic States in relation to the Russian-Ukrainian conflict, said University of Latvia researcher Mārtiņš Kaprāns in an interview to LNT programme Rīta Panorāma on Friday, 15 March.

New Zealand shaken by tragic terror attacks in mosques

40 people have lost their lives in New Zealand, where terror attacks have been committed in two mosques in the city Christchurch today, according to the country's government. The tragic events have taken place on Friday, March 15.

Minister: EC should not be allowed to cut financing to countries with low court independence

From the perspective of the European Union’s legislation and democracy, European Commission should not be given rights to halt funding only because EC thinks the rule of law is insufficient in some country, says Latvian Foreign Affairs Minister Edgars Rinkēvičs.

EU's Tusk to call for long delay of Brexit

European Council President Donald Tusk has said he will invited to EU leaders «to be open to a long extension» of the Brexit deadline, if the UK needs to rethink its strategy and get consensus after it decided to ask for a delay.

Weather to remain rainy in Latvia; air temperature expected above 0° C

At the end of the week, a cyclone will approach Latvia from Scandinavia’s side, which will bring rain and wet snow to many parts of Latvia, as reported by State Environment, Geology and Meteorology Centre.

Latvian Saeima votes to make mental healthcare more accessible

In the near future, it is planned to significantly improve accessibility of mental healthcare in Latvia. The goal is to provide residents with evidence-based, modern, quality mental healthcare. This is provided by the Plan to Improve Access to Mental Health Care for 2019-2020 approved announced at the State Secretaries meeting of Thursday, 14 March, as confirmed by Healthcare Ministry’s representative Anna Strapcāne.