ERA Family Finance is owned by the president of Keso Senukai Lithuania, Arturas Rakauskas. The DIY store chain is seeking to take over the PayRay Bank, which has faced sanctions from the Lithuanian central bank.
Rakauskas established ERA Family Finance specifically for this purpose. It is seeking permission from the Lithuanian Competition Council to buy 100% of the PayRay Bank and to take sole control over it, the company announced on Tuesday.
Rakauskas said that ERA hopes to “restructure” the fintech enterprise.
“PayRay is a healthy and promising bank with a strong and professional management team,” Rakauskas declared in a statement. “The relationship between the bank’s current shareholders and our country’s regulators, however, is a challenge. We are aware of our responsibility to put the bank back on a stable track, thus contributing toward the sustainability of Lithuania’s financial system.”
The expansion plans will be presented once ERA Family Finance receives competition approval. The competition watchdog said that it received the request on September 26.
PayRay Bank provides loans, factoring and leasing services to small and medium businesses in Lithuania. It shareholder is 2404 S.A., which is a Luxembourg-registered holding company. The main beneficiaries are Italians Luigi Grande and Gabriele Balducci, each of whom hold 48% of shares.
This past January, the bank of Lithuania levied a fine of EUR 210,000 against the PayRay bank for violation of laws related to accounting, credit risk management, transfer of functions, etc.
Rakauskas owns 50% of Kesko Senukai Lithuania and is the company’s director. Finland’s Kesko owns the remaining 50% and is known at this time to be seeking to remove Rakauskas from his position as president of the group.
Source: BNS
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