Multitude Bank secures €15m majority shareholding in Norwegian digital challenger Lea Bank
Multitude Bank, a wholesale bank based in Malta, has acquired a 9.9% stake in listed Norwegian digital challenger Lea Bank, becoming a majority shareholder.
Multitude Bank acquires Lea Bank majority share
This initial purchase is set to be joined by a further 8.7% stake, for which an additional agreement has been signed. The deal is pending the approval of the Norwegian Financial Authority and the Swedish Financial Authority.
The total cost of the transaction is understood to be around €15 million, financed solely through Multitude’s liquidity, and will hand the bank an 18.6% ownership stake if successfully completed.
Founded in 2016, Lea Bank specialises in consumer loans and deposit products, serving 70,000 customers across Europe.
Having secured a banking licence in Sweden in June, the challenger is seeking to list on the Nasdaq Stockholm next year – along with the transition of its headquarters – mirroring its current listing on the Oslo Stock Exchange.
A statement by Multitude claims its majority shareholding in Lea Bank will garner “an attractive financial return in terms of dividend yield and income”.
Multitude currently operates as the wholesale banking subsidiary of Finland’s Multitude PLC, while Ferratum and CapitalBox, contained within the same group, provide consumer banking and SME banking services respectively.
