REG - Nova Ljubljanska - NLB to acquire Summit Leasing

Nova Ljubljanska Banka dd LjubljanaAnnouncement

30/11/2023 07:15

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RNS Number : 1972V  Nova Ljubljanska Banka d.d.  30 November 2023

 

Date: 30 November, 2023

 

NLB to acquire Summit Leasing, accelerating the realisation of NLB's ambitions
in the strategically important leasing segment

 

 

Pursuant to the provisions of the Rules of the Stock Exchange, Article 17 of
the Regulation (EU) No. 596/2014, and Article 130 of the Market in Financial
Instruments Act (ZTFI-1), Nova Ljubljanska banka, d.d., Ljubljana with
registered office: Trg republike 2, 1000 Ljubljana, hereby publishes the
following notice:

 

On 30 November 2023, Nova Ljubljanska Banka, d.d. Ljubljana ("NLB") entered
into a sale and purchase agreement to acquire a 100% shareholding in SLS
HOLDCO, holdinška družba, d.o.o., the parent company of Summit Leasing
Slovenija d.o.o., and its subsidiaries ("Summit Leasing") from funds managed
by affiliates of Apollo Global Management Inc. ("Apollo Funds") and the
European Bank for Reconstruction and Development ("EBRD").

 

Summit Leasing is a leading provider of auto finance in Slovenia. As of 30
September 2023, Summit Leasing had consolidated gross receivables of c. EUR
890 million, which included EUR 635 million related to the used and new
vehicle segments in Slovenia and, through its wholly owned subsidiary Mobil
Leasing d.o.o., gross lease receivables of c. EUR 120 million in Croatia.
Summit Leasing is also a leading provider of point-of-sale consumer finance in
Slovenia, recording c. EUR 95 million gross receivables as of 30 September
2023.

 

Summit Leasing has a vast network of over 750 dealers in Slovenia and Croatia,
as well as over 550 points-of-sale in consumer finance in Slovenia. At the end
of 2022, Summit Leasing managed c. 140,000 outstanding financing contracts
with over 110,000 customers.

 

The consideration for the transaction represents a modest premium to the book
value of Summit Leasing. Subject to the development of the business up until
completion, the acquisition is expected to increase NLB's risk weighted assets
by approximately EUR 700 million, comfortably within EUR 4 billion tactical
capacity for M&A. Cost and funding synergies are expected to ensure that
the transaction is earnings accretive from the first full year of acquisition,
with full realisation of cost synergies targeted within a period of
approximately 18 months from completion.

 

Completion of the transaction is subject to regulatory and anti-trust
approvals and is planned for the second half of 2024.

 

"That the time has come for further growth of the NLB Group, albeit inorganic,
should come as no surprise to anyone who has closely followed our development
over the past few years. We have namely repeatedly emphasized that we are
constantly monitoring market conditions and analysing potential opportunities
for tactical mergers and acquisitions, that could open new opportunities or
potentially even new markets to us, but above all increase added value for our
stakeholders and provide our clients with additional services and solutions,"
stated NLB's CEO Blaž Brodnjak as the acquisition was announced.

 

"Leasing is one of the strategic activities of the NLB Group, so it is not
surprising that we have gradually expanded this activity from the Slovenian
market also to the North Macedonian and Serbian markets. We believe that
leasing will become a significant part of the Group. It is planned that in its
mature phase, it will contribute more than EUR 1 billion to the total assets
of the Group, with the newest acquisition significantly accelerating this
ambition. Our goal is for our leasing companies to become the leaders in the
field of movables across our region and to play an important role in mobility
in the markets of our presence. Summit Leasing's extensive dealer network in
Slovenia will complement our digital and direct model and therefore provide
the enlarged business with an omnichannel distribution platform that will be
well positioned for future growth," further emphasized NLB's CEO.

 

"Summit Leasing is a leader in the leasing market in Slovenia with a firm
commitment to providing services of the highest standards to its vendor
partners and customers. Since its inception in 2000, the company has undergone
an amazing journey of profitable growth, including tripling its balance sheet
since 2017. Today represents yet another important milestone in Summit
Leasing's development. We are excited about the planned acquisition of Summit
Leasing by NLB and we are convinced that we will continue to thrive as part of
one of the region's largest financial groups. We recognise that NLB shares
Summit Leasing's commitment to and passion for innovation and excellence, and
we are looking forward to a fruitful partnership that we believe will benefit
our customers and vendor partners. On behalf of the management of Summit
Leasing, I also wish to personally and sincerely thank our shareholders Apollo
Funds and EBRD for their support, focus, guidance and commitment to the
business over the past years," stated Mitja Otorepec, CEO of Summit Leasing.

 

NLB has been advised on the transaction by Deloitte UK Corporate Finance
(financial adviser); Deloitte CE South (due diligence adviser); Kavčič,
Bračun & Partner (legal adviser); and Kinstellar (legal adviser).

 

Investor Relations

NLB d.d, Ljubljana

 

 

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