On 5 June 2020, Danske Bank A/S and the Estonian bank AS LHV Pank have signed an agreement that LHV will acquire Danske Bank’s unit involved with Estonian corporate and public sector creditcs. The transaction will be finalised in October 2020, when the final scope and price of the transaction will also be determined. A prerequisite for finalising the transaction is getting permission from the Competition Authority.
The acquired unit essentially consists of the credit portfolio of Estonian corporate clients and public sector, the volume of which is 312 million euros. With the transaction, LHV Pank will take over serving about 670 business and 85 public sector customers.
“We believe this provides a good solution for both Danske Bank and the affected customers, who will benefit from being serviced by a bank domiciled in Estonia and get access to a full range of financial products and services”, - says Frederik Bjorn, EVP, Head of the Baltics and Russia, Danske Bank.
Both parties have committed to ensure a smooth transfer of services and all needed assistance to customers subject to this transfer. The current credit terms will not change due to the transfer. Once the transaction is formally in place, customers will be contacted with full details of the transfer process and how this will affect their future loan servicing agreements. In the meantime, customers do not need to take any action and their loan servicing will continue as usual until further notice.