Hekla offered for sale

Arion Bank has decided to offer for sale the entire share capital of the car dealership Hekla which is owned by the Bank. Investors who meet the necessary requirements will be provided with information on the company and given the opportunity to make an offer.

• Arion Bank intends to sell all the shares in a single transaction
• The sale process is open to all professional investors as well as individuals and legal entities who, in the opinion of the seller, have the relevant expertise and financial strength.
• The seller reserves the right to restrict access to the sale process for reasons including the rules on competition and other legal obstacles.

Offers can be submitted until 29 September
Interested investors are asked to submit a confidentiality agreement to the manager of the sale, Arion Bank – Corporate Advisory. Participants will then be given teaser documents introducing the company between 21 and 28 September. Non-binding offers will be accepted until 4:00 p.m. on Wednesday 29 September. The offers will be evaluated and selected investors will be invited to continue to the next stage. These investors will then be given more detailed information on Hekla’s operations and finances before final offers are invited and agreements on the sale are entered into.

Strong brand name
Hekla was founded in 1933 and has been a dealer for various makes of car, machinery and electronic equipment. Nowadays Hekla’s business focuses on selling new and used motor vehicles and providing related services. The company provides sales and service support for such top names as Volkswagen, Audi, Skoda, Mitsubishi and Piaggio.

18.5% market share
Hekla’s motor vehicle business had a turnover of ISK 5.5 billion in 2009. It has a market share of 18.5% in new car sales so far in 2010, which is similar to the last five years.