Danske Bank to sell Estonian private lending unit to LHV in $ 458 million deal

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A woman walks past the Estonian branch of Danske Bank in Tallinn, Estonia on January 22, 2019. Photo taken on January 22, 2019. REUTERS / Ints Kalnins

COPENHAGEN (Reuters) – Danske Bank, which is trying to recover from a major money laundering scandal, has agreed to sell its portfolio of Estonian private loans to LHV Pank for € 410 million (458, $ 3 million), Estonian company LHV said on Monday. .

Danske Bank has already announced that it will withdraw from the Baltic states and Russia after Estonia ordered it earlier this year to close the branch at the center of one of the biggest money laundering scandals in the story.

The Estonian bank said it plans to finalize the deal by the fall. Danske Bank was not immediately available for comment.

The loan portfolio, 97% of which is home loans, stands at around 450 million euros at the time of the transaction, LHV said, adding that it will take over from the 10,800 private clients.

LHV said it would need to raise additional capital to finance the acquisition.

Danske is under investigation in Denmark, Estonia, Britain and the United States for some 200 billion euros ($ 226 billion) in payments from Russia, states of the ex-Soviet Union and elsewhere which would have passed through its Estonian branch.

Reporting by Stine Jacobsen; Editing by Stephen Coates and Louise Heavens


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