Glikman Alvin has advised JSC BM Bank (the former Bank of Moscow) – a member of the VTV Group – on the transfer of its 59.7% stake in the Estonian Credit Bank to Coop Eesti and Inbank. Ellex Raidla acted for Coop and Inbank, while Supremia Attorneys at Law advised the mediator of the share sale.
As a result of the acquisition, Coop Eesti and Inbank will gradually increase their shareholding in Eesti Krediidipank to 75%. The new bank will be called Coop Pank as of autumn.
The transaction will be done in two stages. In the first stage, Coop Eesti will acquire 60 percent and Inbank 10 percent of Krediidipank. Then the new bank will acquire the joint subsidiary of Coop Eesti and Inbank – Coop Finants – and the joint subsidiary of Eesti Krediidipank and Inbank – Krediidipank Finants – and as a result of this the shareholdings in the new bank will be distributed 55% to Coop Eesti and 25% to Inbank. The aim of Coop and Inbank is to also buy out the remaining 20% of the minority shareholders of Krediidipank and include an additional financial investor to the transaction during 2017.
According to Coop manager Jaanus Vihandi, the aim is to provide everyday banking services in places where major banks have left in recent years. “Coop is Estonia’s biggest, unique associated organization with 80,000 customer owners and nearly 600,000 loyal customers and it consists of 19 associations. It is important for Coop’s customer owners and loyal customers that they do not have to drive tens of kilometers for elementary banking services,” explained Vihand.
Eesti Krediidipank is one of the oldest credit banks in Estonia. The bank was founded by the former president of the Central Bank Rein Otsason and Estonian entrepreneurs.
The Glikman Alvin team was led by Partner Paul Keres.
According to Ellex Raidla Partner Raino Paron, who led the firm's team on the matter, in addition to acquiring the shares, an important part of the firm's assistance was advising Coop on acquiring permission from the European Central Bank for gaining control over Krediidipank. Paron was assisted by Senior Attorney Helen Metsar, and Attorney Martin Maesalu.
Partner Tarvo Lindma of the Supremia Law Office advised the mediator who mediated the sale of shares of Eesti Krediidipank from Bank of Moscow to Coop/Inbank.