RIGA, 20 April 2015. SJSC “Privatizācijas aģentūra” (Privatisation Agency hereinafter referred to as PA) has completed the sale of shares of Citadele Bank, after which Ripplewood and a group of twelve international investors became shareholders of Citadele Bank. The investors paid 74.7 million euros for the shares, exceeding the initially predicted amount of sale. European Bank for Reconstruction and Development (EBRD) will retain 25% stake in the bank. New shareholders together with the EBRD increased the share capital of Citadele Bank by 10 million euros.
Latvian Privatization Agency signs to sell 75% of Citadele Bank to international investors organized by Ripplewood Advisors LLC. The EBRD maintains 25% of the bank. Ripplewood aims to build Citadele Bank into a national champion.
On October 22, 2013 the Cabinet of Ministers of the Republic of Latvia (CM) supported selection committee’s recommendation to approve the international investment bank Société Générale S. A. as a financial advisor for sales transaction of Citadele Bank, and its main task will be establishment of the best model for attracting investors to Citadele Bank, as well as the actual implementation of the established model. Proposals submitted by investment banks were evaluated by a specially formed selection committee with the participation of representatives of the Ministry of Finance, Ministry of Economics and JSC "Privatization Agency" (PA), as well as representatives of Citadele Bank’s supervisory board and the European Bank for Reconstruction and Development (EBRD).
On December 17, 2013 the Cabinet of Ministers of the Republic of Latvia (CM) approved the strategy for attracting investors to Citadele Bank. The strategy envisages dual track process of simultaneously contacting strategic and financial investors with the purpose of selling shares via the trade sale whilst also exploring the potential for an initial public offering. Preliminary there will be marketing activity to determine the interest of the various categories of potential investors. The decision on the specific sales model shall be taken upon completion of marketing activities [March 2014].
RIGA, 15 April 2014. The Cabinet of Ministers (CM) has got acquainted with the report of the SJSC “Privatisation Agency” (PA) and the consultant Société Générale about the progress of implementation of investor engagement strategy of Citadele Bank. The consultant informed the government that investors had certified their interest in becoming strategic investors of the bank by buying shares via the trade sale transaction; moreover, investors show interest in the initial public offering of shares (IPO) by buying shares at the stock exchange. The previous strategy of investor engagement approved by the government envisaged performing the study of both of the possible scenarios.