IPAS Indexo (IDX1R) Status update summary

Strategic transaction and group structure

• Indexo will acquire over 62% of DelfinGroup, aiming for 65-70% ownership through voluntary and mandatory offers, with DelfinGroup remaining a listed company and shareholders able to swap shares for Indexo shares.

• Indexo issues up to 740,000 new shares at €10.15 each to fund the acquisition and bank growth, with commitments already received for over 52% of the offer shares.

• The transaction aims to create a leading local financial group in Latvia, leveraging both companies' growth and enabling cross-selling and broader product reach.

• Financial forecasts and consolidation assume 65% DelfinGroup ownership, with synergies from refinancing DelfinGroup's funding expected to generate €6–8M in additional profits from 2027, subject to regulatory approval.

• Voluntary offer for DelfinGroup shares runs from 24 Nov to 8 Dec, with settlement on 15 Dec, followed by a mandatory offer as required by law.

Financial performance and growth outlook

• The combined group will be profitable from closing, targeting over €30M net profit by 2028 and a consolidated loan portfolio exceeding €770M.

• Credit portfolio at acquisition will be close to €200 million, with credible growth plans and INDEXO's household loan market share projected to reach 8% by 2028.

• Pension business assets under management grew to €1.515B by Q3 2025, with net profit and commission income rising.

• INDEXO Bank surpassed 46,000 customers, with deposits at €63.14M and loans at €45.1M as of October 2025, and lending growth is strong with a 2.1x increase in net interest income in Q3 2025 compared to Q2.

• Bank is rapidly growing, especially in mortgage refinancing, and aims for breakeven by end of 2026.

Shareholder options and capital increase

• DelfinGroup shareholders can swap shares for Indexo (1 Indexo : 7.3 DelfinGroup), remain with DelfinGroup, or sell at €1.30 per share, with the share swap offering a premium and participation in group synergies.

• Dividend flow from DelfinGroup will support Indexo’s growth and future dividend policy, with dividends expected from 2028 profits and a target payout of 20% of net profits, subject to shareholder approval.

• Indexo aims to approve a forward-looking dividend policy at the 2026 AGM, with dividends expected after 2028.

• Minimum investment for new shares is one share, and priority in share allocation is given to existing shareholders.

• Shareholders with 200+ shares receive a free property valuation for mortgage agreements signed by April 2026.