Romanov eyes sponsor takeover

HEARTS owner Vladimir Romanov is thought to be planning a bid to take full control of the Lithuanian bank which sponsors the club's shirts.

Romanov is already the largest shareholder of Ukio Bankas with a stake of about a third.

Shares in the company, which is quoted on the Lithuanian stock exchange, have seen their value fall steeply in recent years and are worth less than a quarter of what they were three years ago. The company's market capitalisation is currently around 60 million.

Although Hearts are sponsored by Ukio Bankas, they are owned by Romanov's offshore firm, Ukio Bankas Investment Group, which is independent from the bank.

Last month the bank was linked to alleged money laundering activities but vehemently denied the claims and said all its activities followed international laws.

A brief statement from the bank yesterday said Romanov had applied for permission from competition and banking authorities in Lithuania to increase his stake although no formal offer to buy the shares he doesn't own has yet been made. It is not yet clear how Romanov intends to fund the potential move.

In 2006, Ukio Bankas signalled its intention to launch a bank branch in Castle Street, Edinburgh and although it has taken premises it has not yet opened for business.

In February the bank reported a net loss for 2009 of around 17m, highlighting issues with problem debtors during the economic downturn and decreased economic activity from its clients.

Hearts' shirt sponsorship deal with Ukio Bankas is believed to be the third-highest in the SPL.

In May, the club revealed that its debts had climbed to 35m for the year ending 31 July 2009, a 5m increase on the previous 12 months.

The club reduced operating losses from 11m to 8m and also cut the wage bill by 800,000.