Report: Snoras paid 22.6 mln euros for Latvian bank

  • 2005-10-26
  • Baltic News Service
VILNIUS - Snoras apparently paid about 78 million litas (22.6 million euros) for the 83.01 percent stake in Latvijas Krajbanka (Latvian Savings Bank) based on the bank's financial statements for the first nine months of this year.
According to the statement, Snoras' investments in foreign banks' securities reached 78.1 million litas as of Oct. 1, compared with just 62,000 litas as of early April.
Snoras bought the stake in the Latvian bank in September. It still refuses to disclose the price it paid.

"We buy shares in different institutions and different banks," said Naglis Stancikas, Snoras' deputy chairman and director of the Financial Management Service.

"Under the confidentiality agreement with the Latvian bank's shareholders, we can neither confirm nor deny these figures," Snoras spokesman Saulius Jakutavicius said.

Snoras has announced a tender offer for the outstanding shares in Latvijas Krajbanka at 3.15 lats (4.48 euros) per share. Experts predict that some minority shareholders would not accept the offer.

Snoras, the fourth largest Lithuanian bank, and which has Russia-based owners, has said it intends to increase the Latvian bank's capital and to expand its retail network and leasing operations.

The bank reported a profit of 30.5 million litas for the first nine months of this year, more than double the profit in the same period a year ago. Assets reached 2.5 billion litas at the end of September, up 32.5 percent from the start of the year.

Russia's Konversbank controls 49.89 percent of Snoras through the Luxembourg-registered Conversgroup Holding Company.