Parex starts selling off the pieces

RIGA - Rietumu bank and Parex bank have concluded an agreement on the sale of Parex bank’s subsidiary company Parex Leasing in Belarus, reports the business portal Nozare.lv. The Financial and Capital Market Commission of Latvia has already approved the transaction. In line with the agreement, the details of the transaction have not been disclosed.
“The acquisition of Parex Leasing, which is a part of our long-term strategy pursuing the expansion of Rietumu business activities, regional diversification and investing in lucrative assets, will open up new horizons for further dynamic growth of the bank and Rietumu Group and boost our leasing activity in Belarus,” said CEO and president of Rietumu bank Alexander Kalinovski.

Rietumu banka already owns a majority stake in WestLeasing Group, one of the leading companies operating in Belarus, Russia and the Ukraine and offering equipment and transport leasing services in these countries. Both WestLeasing Group and Parex Leasing are the leaders on the local market.
Renat Lokomet, deputy head of Rietumu’s Credit and Investment Department, noted that “In the deal process, we carried out a due diligence to evaluate the leasing portfolio of Parex Leasing. We are confident that the acquisition of Parex Leasing will give us the opportunity to strengthen our position in Belarus by providing excellent commercial and industrial transport leasing services to local businesses.”

Parex Leasing was established in 2004 to provide commercial and industrial transport leasing services in Belarus. Prior to the transaction settlement, Parex owned 100 percent of the company.
Rietumu bank reported earnings of 8.3 million lats (11.8 million euros) for last year. The bank’s total assets remained stable during the year and totaled 1 billion lats at year-end, down by 12 percent compared to the end of 2008. Capital and reserves totaled 133 million lats. Rietumu earned 20.5 million lats in 2008, and 34.8 million lats in 2007.