The Growmore Group, a multinational investment and financial resources group of operations around the Uk, the United Kingdom, Europe, India and the Caribbean, has entered into a strategic takeover deal with Medicinos Bankas UAB, Lithuania’s largest retail bank with assets of US$ 395 million (€355 million).
The transaction would represent the extension of Growmore’s presence in the European Union (EU) banking market, backed by its experience in financial services, including offshore banking and wealth management. Ernst & Young and Sorainen were financial and legal advisers to Growmore on the contract, respectively. The selling process of the Bank was handled by Deloitte and the law company TGS Baltic.
Backed by diversified income sources, a robust net interest margin and sustainable productivity, Medicinos Bankas has a solid base with a deposit balance of US$ 334 million (€301 million). At the end of 2019, the bank’s capital adequacy level was 17.63 per cent safe.
Nitin Shelke, Chairman of the Growmore Company, said: “This transaction represents a major phase in Growmore’s dream of a full-time financial services conglomerate. Operating on a highly competitive and high-potential market, Medicinos Bankas is well capitalized and has recorded steady success over the years. Despite the competitive global climate, we continue to look at growth prospects with the goal of building a one-stop shop for our clients’ banking needs and providing long-term value to all of our stakeholders.”
The activities of Medicinos Bankas, including its 51 branches in the region, will proceed as normal, with a primary emphasis on lending to small and medium-sized businesses, personal banking services and agricultural financing. With Growmore focused on strategic acquisitions in the funding of small and medium-sized companies and start-ups, the transaction is a great match, with Lithuania reporting a consistent growth in demand for SME funding.
Animesh Saxena, Chief Investment Officer of Growmore, added: “We believe in the tremendous value-added that this transaction, with its strategic position, would provide us with a springboard to further expand our presence around the EU.” Lithuania has strongly diversified banking activities, with fees and commissions responsible for approximately 50% of the overall operational revenues of Medicinos. Over the last few years, the bank has steadily raised its RoE and retained a stable loan book by growing its non-performing assets.
Previous to the Covid-19 crisis that had plagued the nation, Lithuania registered good economic success with its Economic Confidence Index surpassing the EU in 2016 and staying high above the long-term average of 110. Lithuania’s credit scores have increased, although financial institutional changes have enhanced profitability, ranking 11th out of 190 countries in the Ease of Doing Business World Bank.
Driven by a team of experienced experts, Growmore carries a rich legacy spanning almost two decades in financial services across industries and core geographies. A supporter in the digital economy of the future, Growmore has established and created one of the first Healthcare Digital Currencies in the world. The group is involved in the field of solar energy, establishing a 1GW PV manufacturing plant in India and the UAE.
