VILNIUS - The central Bank of Lithuania has begun analyzing Konversbank's request to
approve the Russian bank's acquisition of Snoras, Lithuania's fourth biggest
commercial bank by assets, after receiving certain documents from the
Russian central bank.
Konversbank is seeking the Bank of Lithuania's permission to acquire and own
between one-fifth and two-thirds of shares in Snoras. This includes
purchasing Snoras' new 25-million-lita (7.25-million-euro) share issue and
taking over direct ownership of 49.9 percent of shares in the Lithuanian
bank from the Luxembourg-registered Incorion Investment Holding Company.
"We have received certain information regarding the Russian central bank's
approval [of the deal], but we do not think this is a final document," said
Audrius Misevicius, deputy chairman of the Bank of Lithuania's board.
"We will seek further clarification from the Russian central bank. On the
other hand, we are considering the investor's request to give the go-ahead
for this acquisition," he added.
Konversbank subscribed for Snoras' new issue of 2.5 million shares with a
face value of 10 litas each on June 20. Rules outline that the investor must
pay for the subscribed shares within 30 days after securing approval for the
acquisition from the Bank of Lithuania.
Konversbank's representatives have said earlier that they expect to obtain
the Russian central bank's approval for the transaction in the third quarter
of this year.
Konversbank will own 57.6 percent of Snoras after purchasing the new issue
and after becoming the direct holder of the 49.9 percent stake, which it
currently controls through Incorion Investment Holding Company.
Snoras reported an unaudited net profit of 4.1 million litas for the first
half of this year, a 41.3 percent decline over the same period last year.
The bank's assets rose by 4.5 percent to 1.49 billion litas in the period
from early January to late June.
As of late March 2003, Snoras' other major shareholders included Hoffman
Development and Axcol Properties with 9.9 percent of shares each, as well as
Skepi Shipping with an 8.3 percent stake, and CTPS Ltd. with 5.7 percent.
The bank had 695 shareholders in total.
