The INDEXO financial services group, which includes the pension management company IPAS INDEXO, JSC INDEXO Atklātais Pensiju Fonds, and JSC INDEXO Bank, and, following the completion of a recently initiated transaction, the pension management company VAIRO, plans to launch a voluntary share buyback offer to the shareholders of JSC DelfinGroup, Latvia’s largest non-bank lending company. The aim is to create one of the strongest locally owned financial services groups in Latvia. The offer is subject to approval by regulatory authorities and a resolution by IPAS INDEXO shareholders regarding the issuance of new shares.
Under the proposed transaction, DelfinGroup shareholders will be offered the opportunity to exchange each of their DelfinGroup shares for 0.136986 INDEXO shares. Based on INDEXO’s current stock market price, this exchange offer values DelfinGroup shares at approximately €1.41. Alternatively, shareholders may choose to sell their DelfinGroup shares for €1.30 per share. Both the share exchange and purchase offers value DelfinGroup shares above their current and recent market prices. A third option is to retain existing DelfinGroup shares and continue participating in the company’s growth.
DelfinGroup’s largest shareholders have expressed their support for the proposed share swap and the overall transaction, reinforcing confidence that the set objectives will be successfully achieved.
“Our goal is to build a strong, locally-owned financial services group that enhances the well-being of Latvian residents and businesses through modern, transparent, and personalized services. We are confident that both the VAIRO transaction and the integration of DelfinGroup into the group are significant steps toward this goal. It is important to emphasize that the purpose of this transaction is not to delist DelfinGroup from the stock exchange, but to create synergies that will benefit both INDEXO and DelfinGroup clients and shareholders,” explains Henrik Karmo, Chairman of the Management Board of IPAS INDEXO and one of the founders of INDEXO, highlighting that DelfinGroup will continue to operate as an independent company after the transaction.
“The integration of DelfinGroup into the INDEXO group will strengthen our position to successfully compete with any foreign bank in all major financial service segments in the near future. We believe this synergy will increase the value of both companies by allowing them to leverage each other’s strengths and offer a full range of financial services to customers. For example, DelfinGroup has nearly 100 branches and around 330,000 registered clients, while INDEXO has a substantial pension management business with nearly 145,000 clients and a modern, technology-driven bank that has attracted over 40,000 clients within a year. We see significant synergy opportunities in product portfolio development, marketing, and fundraising,” says Valdis Siksnis, Chairman of the Management Board of AS INDEXO Bank and one of the founders of INDEXO.
Currently, DelfinGroup has over 9,000 shareholders, while INDEXO has more than 6,000 shareholders, with some overlap between the two companies. If a significant portion of DelfinGroup shareholders choose to exchange their shares for INDEXO shares, INDEXO could become one of the largest, or even the largest, publicly listed companies in Latvia by market capitalization, with over 10,000 shareholders. This would increase the liquidity of INDEXO shares, making them more attractive to a broader range of investors. INDEXO will announce the offer timeline and final terms in the coming weeks.
DelfinGroup is a financial technology company and the largest non-bank lending company in Latvia, with rapid expansion in the Lithuanian market. DelfinGroup’s total loan portfolio currently stands at €129 million. The company employs over 350 people across Latvia and operates under the brands Banknote and Vizia, offering various consumer financial services. DelfinGroup shares are listed on Nasdaq Riga and the company has more than 9,000 shareholders.
More information about the voluntary share buyback offer and INDEXO’s first-half year performance will be shared during an investor webinar tomorrow, August 7, at 18:00 (EEST) in English (16:30 (EEST) in Latvian). We invite you to join the webinar by registering at: https://indexo.lv/en/webinar-202508/
Detailed information about the terms of the voluntary buyback offer will be available in the voluntary buyback offer prospectus, which will be published on the INDEXO website (www.indexo.lv/investoriem) and the Nasdaq Riga website after its approval by the Bank of Latvia.
Disclaimer: This announcement is for informational purposes only and should not be considered investment advice or an offer. If necessary, potential participants in the buyback offer should consult with an expert. Any decision related to the planned buyback offer should be made based on the voluntary buyback offer prospectus approved by the Bank of Latvia.
About INDEXO
INDEXO is a financial services group that includes pension management companies and INDEXO Bank.
INDEXO, an investment management company licensed by the Bank of Latvia, offers modern 2nd and 3rd pillar pension plans in Latvia. It is one of the fastest-growing pension managers in the Baltics, with almost 145 thousand customers and more than EUR 1.4 billion assets under management.
INDEXO Bank, a credit institution licensed by the European Central Bank, serves over 39 thousand clients, with total client funds amounting to EUR 49.9 million and EUR 18.8 million in issued consumer loans.
Founded and headquartered in Latvia, INDEXO is a Nasdaq Riga-listed company with more than 6,400 shareholders. Its mission is to fight for a better financial environment in Latvia and strengthen the well-being of Latvian residents by providing modern and personalized financial services.
For more information visit www.indexo.lv.