August 26, 2021
AS DelfinGroup expands in regions by acquiring AS Moda Kapitāls pawn shop business
Latvian financial service company AS DelfinGroup is expanding in the Latvian regions and has signed a contract with AS Moda Kapitāls (the owner of the fourth largest pawn shop network in Latvia) to purchase the Moda pawn shop business by the end of 2021. AS Moda Kapitāls owns 25 pawn shop branches throughout Latvia. Among other things, the contract will involve the sale of the AS Moda Kapitāls pawn loan portfolio; hereafter AS Moda Kapitāls will specialise in the mortgage loan and consumer loan segments. The approximate price of the transaction is 950 000 euros, but the precise contractual amount will be determined once the transaction has been completed at the end of 2021.
AS DelfinGroup board member Ivars Lamberts: “By acquiring the Moda pawn shop business, the goal of AS DelfinGroup is to strengthen regionally and to increase the number of customers in the regions of Latvia. Expanding into the regions is currently one of the focal points of our business, because the accessibility of modern financial services in many places outside of Riga is limited. AS Moda Kapitāls has been a powerful player with a wide network of branches and good potential for investment. Prior to signing the contract for the acquisition of the Moda pawn shop business, we carefully assessed this opportunity and concluded that the branch estate is well-managed and has a large base of pawn shop customers. Evidence of good management is AS Moda Kapitāls longstanding presence on the Nasdaq Riga stock exchange, where AS Moda Kapitāls bonds have been listed since 2010. Therefore, we believe that by acquiring AS Moda Kapitāls pawn shop business we will not only increase AS DelfinGroup market share in the pawn shop segment but will also raise the overall value of the company in the long term.”
AS Moda Kapitāls board member Guntars Zvinis: “By selling Moda pawn shop business to AS DelfinGroup, we are convinced that our existing customers will continue to receive quality services in AS DelfinGroup branches. Our company will continue operating in the mortgage loan and consumer loan segments. “
AS DelfinGroup transaction with AS Moda Kapitāls regarding the acquisition of the company’s pawn shop business does not require notification to the Competition Council of Latvia, as the notification thresholds are not met.
In March 2021, AS DelfinGroup announced its plans to launch an initial public offering (IPO) on the Nasdaq Riga stock exchange Baltic Main List in the second half of 2021. LHV Bank and law firm Eversheds Sutherland Bitāns are acting as AS DelfinGroup IPO advisors. For more information about the planned IPO, sign up to news on our homepage: https://www.delfingroup.lv/invest.
About AS DelfinGroup
AS DelfinGroup is a licensed financial services company founded in 2009 and represents the brands Banknote, VIZIA, and Rīgas pilsētas lombards (Riga City Pawnshop). The company employs 277 professionals in 93 branches operating in 38 Latvian cities. AS DelfinGroup is a member of the Latvian Chamber of Commerce and Industry and the Latvian Association of Alternative Financial Services and has received the Gold Level status of the State Revenue Service cooperation programme. AS DelfinGroup core services are the retail sale of pre-owned goods in branches and online, pawn loans, consumer loans, and loans specifically designed for people at retirement age. AS DelfinGroup bonds are listed on the Nasdaq Riga First North bond list. In 2020, the company's revenue was 23.7 million euros, the loan portfolio reached 34.7 million euros, EBITDA increased to 9.3 million euros and profit before taxes reached 4.6 million euros. AS DelfinGroup estimated taxes for 2020 are 3.42 million euros. The total number of customers served by AS DelfinGroup exceeds 400 thousand, and on average a month, the company issues 35 thousand different types of loans.
About AS Moda Kapitāls
AS Moda Kapitāls was founded in 1997 with the goal to provide credit services to natural and legal persons. The core business of AS Moda Kapitāls is to provide short-term collateral-based loans. The Moda Kapitāls company has 25 branches throughout Latvia and has more than 15,000 active customers.
Member of the Management Board of AS DelfinGroup
Phone: +371 29144168