Multitude Bank Acquires Majority Stake in Lea Bank

Multitude Bank, based in Malta, acquires a 9.9% stake in Norway's Lea Bank, establishing itself as a majority shareholder in the digital banking sector.

Multitude Bank, a wholesale banking entity headquartered in Malta, has recently made headlines by acquiring a 9.9% stake in the Norwegian digital challenger, Lea Bank, thereby positioning itself as a majority shareholder. This initial investment is poised to be complemented by an additional acquisition of 8.7%, for which a supplementary agreement has been duly executed. However, the consummation of this deal is contingent upon the green light from both the Norwegian Financial Authority and the Swedish Financial Authority.

The financial implications of this transaction are noteworthy, with the total expenditure estimated at approximately €15 million, a sum that Multitude is financing entirely through its own liquidity reserves. Should the deal proceed as anticipated, Multitude will secure an 18.6% ownership stake in Lea Bank, a significant foothold in the burgeoning digital banking sector.

Founded in 2016, Lea Bank has carved out a niche in the realm of consumer loans and deposit products, catering to a clientele of 70,000 customers across Europe. Following the acquisition of a banking license in Sweden this past June, the challenger bank is ambitiously planning to list on the Nasdaq Stockholm next year, coinciding with its relocation of headquarters, a strategic move that mirrors its existing listing on the Oslo Stock Exchange.

In a statement reflecting on this strategic maneuver, Multitude asserts that its majority shareholding in Lea Bank is anticipated to yield “an attractive financial return in terms of dividend yield and income.” Currently, Multitude operates as the wholesale banking subsidiary of Finland’s Multitude PLC, while its sister entities, Ferratum and CapitalBox, provide consumer and SME banking services, respectively. This multifaceted approach underscores Multitude's commitment to diversifying its portfolio within the competitive landscape of European banking.