City deal sealed as LHV snaps up Bank North’s SME lending business
LHV UK has told City PM that the company has reached a deal to snap up Bank North’s Small Medium Enterprise lending business.
“This transaction enables us to accelerate our strategy to expand to servicing SMEs,” the firm said.
LHV UK made an offer to acquire the entire SME lending business of lender Bank North.
LHV UK will acquire Bank North’s entire £17.9m loan book and technology systems for managing the loans. The transaction will also see 20 employees transfer to LHV UK and cooperation agreements with commercial brokers.
LHV UK said it will not need any third-party financing for the transaction.
Once the business and assets transfer is complete, LHV UK will continue to operate the same business model.
The transaction is scheduled to complete later this month, and the proceeds will be used by Bank North to settle creditors as part of its solvent wind-down process.