On 17 April 2018, AS LHV Group decided to reduce the share capital of its subsidiary company, AS LHV Varahaldus, from 2,700,000 euros to 1,500,000 euros, i.e. by 1,200,000 euros.
The share capital is reduced by cancelling of 1,200,000 shares. The share capital reduction results in capital reduction payments to the shareholder (i.e. AS LHV Group, which is the sole shareholder as at 17 April) in the amount of 1,200,000 euros within the time period set by the law.
The reason for reducing the share capital lies with managing the capital more efficiently on the level of the consolidation group. AS LHV Varahaldus is not required to keep the share capital in the present size, as the legal requirements are fulfilled as well with the reduced share capital. As of 28 February 2018 Tier 1 and Tier 2 capital of AS LHV Varahaldus in total was 8,108,660 euros and minimum requirement for own funds was 5,021,284 euros.
The Management Board of the Financial Supervision Authority decided on 5 April to give permission to AS LHV Varahaldus to reduce its share capital by 1,200,000 euros.