Landsbanki has sold a 9.9% share in EIF (Icelandic Enterprise Investment Fund) slhf. and its entire 27.6% holding in IEI slfh. EIF was split into two companies, EIF slfh and IEI slhf., as of year-end 2013. The total proceeds from the sale came to just over ISK seven billion and the buyers came from the ranks of the current owners of EIF and IEI, who were offered the shares for sale in accordance with an agreement to such effect.
Prior to the transaction Landsbanki was the largest shareholder of both companies with a 27.6% holding; following the transaction Landsbanki remains the second largest shareholder with a holding of 17.7%. Following the divestment Landsbanki no longer holds shares in IEI slfh.
Landsbanki will record a total profit of ISK 4.9 billion in the second quarter as a result of the sale and changes in the market price of the shares that continue in the bank’s ownership.
The sale was handled by Landsbanki’s Corporate Finance Division.
Steinthór Pálsson, Landsbanki CEO:
“Landsbanki’s policy is to sell any assets in unrelated operations that the Bank may acquire, and significant successful steps have been taken in this direction in recent years. Landsbanki sold Vestia Holding Company to the Iceland Enterprise Investment Fund in 2010, thereby acquiring a 27.6% share in the Fund. This transaction has returned a significant profit for the Bank, and at the same time EIF has played an important role in reviving the Icelandic economy. The sale will will strengthen the Bank’s position, both in the short term and in the long term.”