We assisted Invalda INVL, the leading investment management and life insurance group in the Baltic region, in signing an agreement with Šiaulių bankas, the largest bank with Lithuanian capital, to merge their retail businesses. The equity value of the deal value – EUR 40.2 million.

After the closing of the transaction, the Šiaulių Bankas group, in addition to the financial services it already offers, will manage second-and third-pillar pension funds and mutual funds in Lithuania and will provide life insurance services throughout the Baltic countries. Invalda INVL will obtain 9.39% of the share capital of Šiaulių Bankas.

New participant in financial markets

Invalda INVL and Šiaulių bankas have merged their retail businesses in order to create a modern and customer-focused next-generation financial market participant that will subsequently increase competitiveness in a market that is dominated by institutions with foreign capital and will create value for the wider Lithuanian economy.

“The merger of these retail businesses will deliver greater value for clients, employees and investors. INVL’s existing clients will continue to receive professional saving, investment and life insurance solutions as well as having additional access to the bank’s wider suite of services. The combined team’s shared aim is for the bank’s services to be the best choice available for customers. Employees, for their part, will have increased opportunities to develop and realise their potential. A bank that is actively growing, expanding its portfolio of services, maintaining high profitability and is attentive to its share value should become even more attractive to institutional and private investors.

This deal benefits Invalda INVL shareholder’s both due to anticipated faster growth in the value of the company’s stake in Šiaulių Bankas and the disclosure of fair value of the INVL’ retail business included in the process of the transaction,” comments Darius Šulnis, President at Invalda INVL.

Completion of the merger of the retail businesses of Šiaulių Bankas and Invalda INVL is planned in late 2023. The transaction will be closed after it is approved by extraordinary meetings of the shareholders of Šiaulių Bankas and Invalda INVL respectively and after all the required regulatory permissions are obtained.

After the completion of this and other announced planned share acquisitions, the Invalda INVL group’s equity stake in Šiaulių Bankas will increase from the current 8% holding to approximately 20%.

In 2021, we also represented Invalda INVL in signing an agreement to acquire 5.87% of Šiaulių Bankas’ shares from the European Bank for Reconstruction and Development.

Our services and the project team

We assisted the client on all the transaction-related matters, structuring of the transaction and negotiations regarding the merger agreement.

Our team consisted of partners Mantas Petkevičius, Tomas Kontautas, Saulė Dagilytė and Daivis Švirinas, as well as senior associates Mindaugas Dominykas Baniulis, Agnė Sovaitė, Aurelija Daubaraitė, Edita Daukšienė and Gerda Skirbutienė.