KPMG Baltics and KPMG Law Advise on the Sale of the Loan Portfolio of Versobank AS


KPMG Law Firm’s Head of M&A Karin Kaup and attorney Kadri Kasepalu as well as Head of Advisory Services at KPMG Baltics Hanno Lindpere and deal advisor Kristjan-Mart Piirsalu advised on the sale of the loan portfolio of Versobank AS.

The loan portfolio of Versobank AS (in liquidation) was acquired by AS LHV Pank according to the agreement concluded between the parties on 19 December 2018. AS LHV Pank acquired the loan portfolio of Versobank AS for approximately 12.2 million euros as of 16 February 2019.

The loan portfolio was acquired as a loan portfolio company, consisting of loan and guarantee agreements and two employees related to the portfolio. The loan portfolio contained loans to Estonian companies in the amount of approximately 10.4 million euros as well as loans to Estonian resident private customers in the amount of approximately 2.8 million euros.

The successful sale of the Versobank loan portfolio is an important milestone in the bank’s liquidation proceedings. The credit institution activity license of Versobank AS was declared invalid by European Central Bank on 26 March 2018, the bank is in liquidation and cannot provide financial services. To date, virtually all customers who have made an application for compensation have been paid out their Versopank deposits. The transfer of the loan portfolio will also allow the bank’s obligations to be fulfilled in front of the loan clients’ segment and to continue with the completion of the liquidation proceedings.

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