Dubai, UAE |Vilnius, Lithuania; May 7, 2020: Growmore Group, a global investment and financial services conglomerate with businesses across the UAE, UK, Switzerland, India and the Caribbean, has entered into an agreement for the strategic acquisition of Medicinos Bankas UAB, a leading retail bank in Lithuania with assets of US$395 million (€355 million).
The acquisition will mark the expansion of Growmore’s banking sector investments into the European Union (EU), backed by its expertise in financial services including offshore banking and asset management. Ernst & Young and Sorainen were Growmore’s financial and legal advisors on the deal, respectively. The Bank’s sale process was managed by Deloitte and the legal firm TGS Baltic.
Backed by diversified revenue streams, a resilient net interest margin and sustained profitability, Medicinos Bankas has healthy fundamentals with deposit portfolio at US$334 million (€301 million). At the end of 2019, the capital adequacy ratio of the bank was at a healthy 17.63 per cent.
Nitin Shelke, Chairman of Growmore Group, said: “This deal marks a strategic step in Growmore’s vision of evolving into a full-suite financial services conglomerate. Operating in a highly competitive and high-potential market, Medicinos Bankas is well capitalized and has reported continued growth over the years. Despite the challenging global environment, we continue to look at growth opportunities with the goal of creating a one-stop shop for the banking needs of our clients while delivering long-term value to all our stakeholders.”
The operations of Medicinos Bankas, including its 51 branches in the country, will continue as normal, and with primary focus on lending for small and medium businesses, personal banking services and agricultural lending. With Growmore focusing on strategic investments in funding SMEs and startups, the acquisition serves as a perfect fit, with Lithuania recording consistent growth in demand for SME funding.
Animesh Saxena, Chief Investment Officer of Growmore, added: “We believe in the tremendous value-add that this acquisition will bring with its strategic location offering us the springboard to further strengthen our footprint across the EU.”
Lithuania has highly diversified banking operations with fees and commission accounting for nearly 50 per cent of the total operating revenue of Medicinos Bankas. The bank has continuously increased its RoE over the last few years and maintained a conservative loan book by reducing its non-performing assets.
Prior to the Covid-19 crisis that has impacted the world, Lithuania had reported robust economic performance with its Economic Sentiment Indicator surpassing the EU in 2016 and remaining strong above the long-term average at 110. Ranked 11th out of 190 countries in World Bank's Ease of Doing Business, Lithuania’s credit ratings have improved while financial structural reforms have boosted productivity.
Led by a team of expert professionals, Growmore brings a rich heritage of nearly two decades in financial services across various sectors and in key geographies. Championing the digital era of the future, Growmore has developed and created the one of the world’s first Healthcare Digital Currency. The group is active in the solar energy space, developing a 1GW PV manufacturing plant in India and the UAE.
About Growmore Group: Growmore Group is a zero-debt family office with businesses in Dubai, Abu Dhabi, London, Zurich and Mumbai. The Group has investments in banking, clean energy, tech and healthcare. Led by a team of expert professionals, Growmore brings a rich heritage of nearly two decades in financial services across various sectors and in key geographies.
In UK, Growmore Group is an appointed representative of Kapwealth Ltd, which is licensed and regulated by the Financial Conduct Authority; in Switzerland, the Group is a member of VQF and officially recognized by the Federal Financial Market Supervisory Authority and Organization of Independent Asset Managers; in Commonwealth of Dominica, the Group has full (investment, retail, digital and commercial) offshore banking services license under the jurisdiction of Financial Services Unit, Ministry of Finance; in the UAE, the Group is licensed by the Dubai Economic Department and has recently received an in-principal approval for Category 3C license from the Financial Services Regulatory Authority of ADGM (Abu Dhabi Global Market) to provide asset management services to its clients.