Dubai firm in deal to acquire Lithuania bank

Ernst & Young and Sorainen were Growmore's financial and legal advisors for Medicinos Bankas UAB deal.

  
A general view of Dubai, following the outbreak of coronavirus disease (COVID-19), United Arab Emirates March 26, 2020.

A general view of Dubai, following the outbreak of coronavirus disease (COVID-19), United Arab Emirates March 26, 2020.

REUTERS/Ahmed Jadallah

 

UAE - Growmore Group, a UAE-based global investment and financial services conglomerate, announced on Thursday that it has entered into a strategic agreement to fully acquire Medicinos Bankas UAB, a leading retail bank in Lithuania with assets of $395 million.

The acquisition will mark the expansion of Growmore's banking sector investments into the Europe, backed by its expertise in financial services including offshore banking and asset management, the company said.

Ernst & Young and Sorainen were Growmore's financial and legal advisors on the deal, respectively. The bank's sale process was managed by Deloitte and the legal firm TGS Baltic.

"The operations of Medicinos Bankas, including its 51 branches in Lithuania, will continue as normal, and with primary focus on lending for small and medium businesses, personal banking services and agricultural lending. With Growmore focusing on strategic investments in funding SMEs and startups, the acquisition serves as a perfect fit, with Lithuania recording consistent growth in demand for SME funding," said Growmore.

Animesh Saxena, chief investment Officer of Growmore, the acquisition will bring tremendous value-add with its strategic location offering us the springboard to further strengthen our footprint across the EU.

Lithuania has highly diversified banking operations with fees and commission accounting for nearly 50 per cent of the total operating revenue of Medicinos Bankas. The bank has continuously increased its RoE over the last few years and maintained a conservative loan book by reducing its on-performing assets.

Prior to the Covid-19 crisis that has impacted the world, Lithuania had reported robust economic performance with its Economic Sentiment Indicator surpassing the EU in 2016 and remaining strong above the long-term average at 110. Ranked 11th out of 190 countries in World Bank's Ease of Doing Business, Lithuania's credit ratings have improved while financial structural reforms have boosted productivity.

Growmore has developed and created the one of the world's first Healthcare Digital Currency. The group is active in the solar energy space, developing a 1GW PV manufacturing plant in India and the UAE. 

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