Indexo Acquires Stake in DelfinGroup LT / Diena – Central Bank Approval
- Latvian investment firm Indexo intends to acquire a majority stake in DelfinGroup through a voluntary share buyback offer, accompanied by a public capital raise. Teh move signals potential...
- Indexo is a Latvian investment company focused on financial services,while DelfinGroup operates in the consumer lending and credit services sectors.Both companies are subject to strict financial market regulations...
- Henriks Karmo,Chairman of the Board of Indexo and one of its founders,acknowledged the complexity of the deal,noting the stringent regulatory oversight and international scope of both organizations.
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Latvian investment firm Indexo intends to acquire a majority stake in DelfinGroup through a voluntary share buyback offer, accompanied by a public capital raise. Teh move signals potential consolidation within the Latvian financial sector.
Background: Indexo and delfingroup
Indexo is a Latvian investment company focused on financial services,while DelfinGroup operates in the consumer lending and credit services sectors.Both companies are subject to strict financial market regulations and are listed on stock exchanges, adding complexity to the proposed transaction. According to DelfinGroup’s “About Us” page, they provide financial services in Latvia, Lithuania, Estonia, Poland, Sweden and Spain.
Henriks Karmo,Chairman of the Board of Indexo and one of its founders,acknowledged the complexity of the deal,noting the stringent regulatory oversight and international scope of both organizations. He stated the process is complex “as both groups of companies work in strictly monitored financial markets, in addition, in several countries and both groups are listed on the stock exchange.”
Indexo intends to make a voluntary share buyback offer to DelfinGroup shareholders, aiming to acquire a majority stake in the company’s capital. To finance this acquisition and support future development, Indexo plans to raise new capital through a public offering of shares. The company will submit an application to the Bank of Latvia to obtain the necessary regulatory approval for the share buyback offer.
The subscription period for the new shares will be announced after the Bank of Latvia approves the share issue prospectus. This prospectus will detail the terms of the offering,including the price per share and the total amount of capital sought.
Regulatory Approval and Timeline
The transaction is contingent upon approval from the Bank of Latvia, the Latvian financial regulator. This approval is crucial given the involvement of two publicly listed companies operating in highly regulated financial markets. The Bank of Latvia’s review will likely focus on ensuring the stability of the financial system and protecting the interests of shareholders and consumers.
While a precise timeline hasn’t been released, the process will involve the submission of the share buyback offer application, a review period by the Bank of Latvia, and subsequent announcement of the share issue prospectus approval. Following prospectus approval, Indexo will announce the subscription period for the new shares.