Joint Stock Company Reverta has completed evaluation of binding bids and has approved a portfolio buyer as recommended by the financial advisor KPMG Baltics. In line with usual procedures, Reverta has submitted the offer of the potential investor to the Cabinet of Ministers of the Republic of Latvia. Agreement with the selected investor on sale of Reverta’s loan portfolio could be signed in the coming days.
Taking into account that the potential investor is a respected international company operating in a free market and under competition, the principles of good practice and the agreement of both parties require disclosure of the investor immediately after the signing of the agreement.
The decision of the Management and Supervisory Board of Reverta regarding the selection of the potential investor was made based on such criteria as industry standards and a transparent sales process organised in line with the accepted practice in the world, as well as evaluation of the received best binding bids to identify risks related to financial issues and the structure of the transaction, as well as legal risks arising from the agreements. Reverta also evaluated good reputation and trustworthiness of the potential investor.
As reported before, in 2016, the Cabinet of Ministers adopted a decision to commence a sales process of Reverta’s loan portfolio. In order to implement this decision, Reverta concluded an agreement with the best tenderer KPMG Baltics for the organisation of the sales process. In 2016, of 64 potential investors that were addressed, 15 interested parties signed non-disclosure agreements, and already in November 2016 they were granted access to a data room. Having examined the presented information, seven potential investors submitted their non-binding bids. Following the evaluation of the submitted offers, four best bidders were invited to participate in in-depth examination of Reverta’s loan portfolio to be able to submit their binding offers.
As a result of intensive work of almost seven years, Reverta has recovered EUR 754 m which is 67 % of all distressed assets that were allocated to Reverta after the takeover and split of Parex Bank. Currently, only most distressed loans with a long history of repayment and liquidity problems remain in Reverta’s portfolio – average number of delayed payment days under these loans exceeds 2500 days. These and other circumstances were made known to the potential investors so that they would be able to evaluate the possibility to recover the issued loans and to make their calculations of the portfolio purchase price.
Additional information:
Reverta’s main competencies are loan restructuring, debt recovery and real estate management. According to the Restructuring Plan approved for Parex Bank by the European Commission, Reverta’s economic activities will be discontinued at the end of 2017. By the end of this term, Reverta has to complete the workout of its portfolio and cease all operations. To learn more about Reverta, please visit our web page: www.reverta.lv. For more information contact: Marita Ozoliņa Head of Communication and Marketing Department Tel.: 67779142 or 29287169 E-mail: marita.ozolina@reverta.lv
