Strategic holding in Hagar delivered to buyer after Competition Authority approves purchase agreement of 11 February

On 11 May the Icelandic Competition Authority gave its approval for the Bank’s sale of a strategic holding in Hagar hf. which had been announced three months earlier. The transaction has subsequently been finalized and a 35.3% stake in Hagar has been delivered to Búvellir, a company owned by pension funds and other professional investors. The original press release on the acquisition from 11 February 2011 can be found on the Bank’s website.

The transaction represents the first stage in the sale of the Bank's interest in Hagar. Eignabjarg, a subsidiary of the Bank, now owns a 64.1% holding in Hagar. The next stage of the sale process is to prepare Hagar for a stock market listing; an application is expected to be made later this year. Prior to the listing Arion Bank will offer shares in Hagar to professional investors and general investors. The sale process is being managed by Arion Bank - Corporate Advisory.

Hagar’s annual general meeting was held on 11 May and a new board of directors was elected. The board now comprises the following members: Árni Hauksson, chairman, and Hallbjörn Karlsson, who represent Búvellir, and three independent board members, Erna Gísladóttir, Guðbrandur Sigurðsson and Kristín Friðgeirsdóttir.

Following the AGM, Hagar published its financial results for the first quarter, which ended on 28 February 2011. The company had a turnover of ISK 66,700 million, EBITDA of ISK 4,384 million and net earnings of ISK 1,093 million. Hagar’s total assets amounted to ISK 21,830 million at the end of the financial year and shareholders’ equity was ISK 3,612 million. Hagar’s annual financial statement can be examined in more detail on the company's website.