Negotiations with HSBC Investment Bank
Reykjavík,
17 August 2001
Press Release
The Executive Committee on Privatisation, acting for the Minister of Commerce, has resolved to enter into negotiations with HSBC Investment Bank regarding services in respect of the proposed sale of the State Interest in Landsbanki Íslands. This decision of the Committee is based on an evaluation of the submitted tenders for the project; a total of six valid tenders were received. In the comparison of the tenders, account was taken of the following criteria:
- International experience in the financial market;
- Experience of individual consultants;
- Proposals on the arrangement of the consultation;
- Proposals on the arrangement of the project;
- Amount of the offer;
- Knowledge of the Icelandic financial market.
The tenders received were well prepared and backed by large and powerful companies with extensive experience of the international financial market. Based on the above criteria, the tender submitted by HSBC Investment Bank was most favourable, and the Committee therefore decided to accept that tender. HSBC Investment Bank possesses extensive knowledge and experience in financial services and ranks with the foremost investment banks in the world today. The Executive Committee on Privatisation will within the next few days enter into negotiations with HSBC and subsequently preparations will begin for the sale of the shares of the State in Landsbanki Íslands, including further determination of the terms of the sale. The preparation and execution of the sale will take place in co-operation with Landsbanki.
Pursuant to a decision of the Icelandic Government of 18 June, the plan is to sell a substantial share of the State holdings in Landsbanki Íslands hf. to a core investor following pre-selection and a limited tendering procedure. "Substantial share" refers to at least a third of the shares in the Company, and the sale is scheduled to take place before the end of the year.
Executive Committee on Privatisation