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    Public offering of securities: 20-30% of shares in Hagar for sale at ISK 11-13.5 a share
    24.11.2011

    Public offering of securities: 20-30% of shares in Hagar for sale at ISK 11-13.5 a share

    Arion Bank’s Investment Banking division will in the next few days present to interested investors a public offering of shares in Hagar. Eignabjarg, a subsidiary of Arion Bank, will be offering for sale 20-30% of the issued shares of the retailer Hagar hf. to the general public and professional investors. Bids will be invited in the price range of ISK 11-13.5 a share.

    Aim is diverse shareholder base

    Eignabjarg has already sold a 44% stake to a well-diversified group of pension funds and other professional investors but will retain a 20-30% interest until next year, after the planned listing of Hagar on NASDAQ OMX Iceland. The aim of the offering is to enable Hagar to meet the conditions of NASDAQ OMX Iceland on diverse share ownership and to diversify the shareholder base of Hagar by attracting both public and professional investors as shareholders; a further aim is for the seller to obtain a satisfactory price for its share in Hagar.

    Proceeds from the offering could total ISK 2.7-4.9 billion

    The offering represents 20% of the issued shares in Hagar hf., of which 12.5% are intended to be sold in a book building process and 7.5% via online bids. The Seller may change these percentages if demand from investors means that this will better suit the aims of the offering. The Seller also reserves the right to increase the size of the offering to up to 30% of issued share capital.

    All shares in the offering will be sold at the same final offer price which will be between ISK 11 and ISK 13.5 a share. Investors may specify in their bids that the final offer price may not exceed a certain maximum price a share. If no maximum price is specified, the investor is deemed to have accepted the final issue price.

    The subscription period will be 5-8 December 2011

    The offer is open to parties (individuals and legal entities) with Icelandic identification numbers who are legally competent to manage their own finances.

    Online bids

    Bids in the price range ISK 100,000 to ISK 25 million are submitted via a special subscription website on Arion Bank's website, www.arionbanki.is. In order to submit an online bid investors must either have an online bank account at Arion Bank or order a password via the subscription website, which is then sent to the online bank account of the applicant which may be at any of the Icelandic retail banks.

    Book building

    Bids in the range ISK 25 million to ISK 500 million are submitted to Arion Bank's Equity Sales and Corporate Finance divisions. It is possible to submit a composite bid, in which the total bid under one identification number is divided into smaller sub-bids of different amounts.

    All decisions on the final offer price, the final size of the offering and the split between book-building and online subscriptions will be based on the demand registered. The result of the offering will be announced on the final day of the offering.