Swiss company to buy Snoras bank

VILNIUS (BNS) - A large Swiss company is buying the controlling share of Snoras bank which is bound to the Russian market to a greater extent than any other Lithuanian bank, the daily Lietuvos Zinios reported.

According to the newspaper, Reinoldijus Sarkinas, the chairman of central Lietuvos Bankas (Bank of Lithuania) board, met with a strategic investor from Switzerland this week and gave his approval to the Snoras takeover deal.

The investor, buying 55.5 percent of bank shares, has not been specified yet. Snoras has promised to name the investor directly after the money has been transferred.

Sarkinas says that, in his opinion, the agreement with strategic investors was the only solution for the bank's predicament.

Snoras issued a new emission with a face value of 33.75 million litas ($8.43 million) in July, for which the bank should take in 168.75 million litas.

Snoras is selling its shares bearing a 10 litas face value for 50 litas each.

If the bargain takes place, the share capital of Snoras will grow from 27 million litas to 60.75 million litas, while the owner's equity will reach 190 million litas.