Heads of Agreement Concluded
Press Release
Heads of Agreement Concluded with Egla ehf. the Co-operative Pension Fund and the Iceland Insurance Company hf.
The Executive Committee on Privatisation, for the first part, and Egla ehf., the Co-operative Pension Fund and the Iceland Insurance Company hf., for the second part, have concluded a Heads of Agreement concerning the acquisition by the latter of a 45.8% share in Búnaðarbanki Íslands hf. The price is slightly over ISK 11.9 billion. The agreement is made subject to due diligence by both parties. The main points of the agreement are as follows:
· Delivery of the shares will take place in two stages. On the one hand, 27.48% of the shares following signature of a purchase agreement and, on the other hand, 18.32% no later than 20 December 2003.
· The average net present price of the shares in the transaction is 4.81.
Egla ehf. is owned by Samvinnutryggingar Mutual Holdings and Ker hf., together with one or more non-Icelandic financial institutions.
Following the transaction, the State interest in Búnaðarbanki will amount to approximately 9 %.
A purchase agreement is scheduled for completion before the end of the year.
Reykjavík, 16 November 2002