LHV Group plans to acquire a share in the financial company B-North
LHV Group have an investment of £4.455m in the UK financial undertaking B-North and acquire a share of 9.9% in the company.
Prerequisites for the transaction include completing the necessary investment round by the company and granting of a licence from the UK Prudential Regulatory Authority.
Commercial and Northern Ltd, currently bearing the business name B-North is a Manchester based tech-enabled financial company, currently in the process of applying for a full UK banking licence from the UK Prudential Regulatory Authority and Financial Conduct Authority to start providing financing to regional SMEs.
With an experienced team and high growth ambitions the company has a strong readiness to commence business activities, and aims to disrupt the £150bn UK SME lending market.
Existing investors in B-North include Greater Manchester Combined Authority and Channel 4 Ventures. Together with LHV Group, B-North is taking in capital from other investors, including pension funds managed by LHV Varahaldus.
B-North is planning on completing its investment round in Q2 of 2021, after which the licensing process of the UK Regulators would have to be concluded. The exact detail of the investment and its impact on LHV’s financial plan will be disclosed by the company after the conditions of the transaction have been met.