This week the Latvian Privatization Agency and Tim Collins, founder and CEO of Ripplewood Advisors LLC (Ripplewood) have signed the agreement for the sale of 75% of the shares of Citadele Bank to a group of twelve international investors alongside Ripplewood. The European Bank for Reconstruction and Development (EBRD) will retain its 25% share in the bank.
Guntis Beļavskis, Chairman of the Board and CEO of Citadele Bank: “I am happy that the exhaustive sale process has come to an end and that we all can again fully focus on the business of the bank.
The bank has performed strongly through the first three quarters of 2014, reflecting solid and stable growth in all main segments of the bank, and a commitment from our employees focused on serving customers to ensure the future success of the bank. We are confident this momentum can now be carried forward with Ripplewood and the consortium of new investors as the new owners along with the EBRD.
The new ownership opens up opportunities for us to further improve and grow the bank. Private ownership will enable Citadele’s balance sheet to grow stronger and expand its share of lending in Latvia and the Baltics. Not only is this important for the bank in terms of increased profitability, it also benefits the overall Latvian economy through increased availability of financing for individuals, SMEs and businesses.
During the past four years of Citadele’s operations, the Citadele group has invested € 644 million in the Latvian economy by financing businesses and individuals, and more than € 1 billion in the economy of the Baltics. In cooperation with Ripplewood and the EBRD we will continue to invest and promote the economic development of the Baltics.
We are already in the process of enhancing our distribution channels to provide more alternatives and better access to our banking network, particularly in smaller towns around Latvia.
We will also focus on improving the value proposition for customers through better service, more product offerings, and enhanced informational capabilities to help grow the business into a valuable local banking leader.
We share the same vision with the new investors: To build Citadele Bank into a national champion in terms of quality and product variety within the Latvian banking sector. It is now our responsibility to make the most of the new found opportunities and I look forward to working with Ripplewood alongside the new investors and the EBRD to create value at Citadele for all stakeholders: customers, employees, shareholders, and the overall Latvian economy.”
About Citadele Bank
Citadele is a local Latvian bank that offers banking, financial and asset management services. The core market of Citadele Group is the Baltic States: Latvia, Lithuania and Estonia. Citadele Bank is the only collaboration partner of American Express in Latvia and Lithuania who is entitled to issue American Express credit cards. The bank is recognized as the best-governed state-owned enterprise in the Baltic States according to a study conducted by the Baltic Institute of Corporate Governance. Citadele’s vision is to become the most valuable local financial group in the Baltic States. 75% minus one Citadele Bank’s shares are possessed by the State Joint Stock Company Privatization agency on behalf of the Latvian State and the owner of 25% plus one share is the European Bank for Reconstruction and Development.