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    Arion Bank offers BM Vallá for sale
    31.03.2011

    Arion Bank offers BM Vallá for sale

    A decision has been made to put up for sale all shares in BM Vallá, a company owned by Arion Bank’s subsidiary, Eignarbjarg.

    • Commencement of the sale process of BM Vallá ehf. will be announced formally today.
    • Indicative offers can be submitted until 2 May. Selected investors will then get access to further information about the company before binding offers are requested and final agreements are reached.
    • The sale process is open to all investors who possess the requisite knowledge and financial strength. The entire shareholding in the company is expected to be sold in one piece.
    • Interested parties are asked to contact Arion Bank - Corporate Advisory which handles the sale process.

    BM Vallá has undergone radical restructuring since the Bank took over its operations in 2010. The cost structuring of the company has been adjusted to the current economic environment but its production capacity can nonetheless meet the needs of an average year without the advent of significant investment. BM Vallá is one of the largest production companies within Iceland‘s construction sector and its brand is firmly established. Its activities revolve around the production of concrete, slabs, units and mortar as well as pumice processing. Although the company has gone through extensive organizational change, its expertise has remained intact. BM Vallá is therefore prepared to remain at the forefront in the market and maintain a strong image of quality goods and services. In the past year, emphasis has been placed on product development, which will serve to strengthen the company‘s position in Iceland but especially its exports.

    The sale process

    The entire shareholding in BM Vallá ehf. is offered for sale and expected to be sold in one piece. The sale process is open to all interested investors who the seller deems as possessing the requisite knowledge and financial strength, i.e. access to at least ISK 500 billion in liquid assets. However, the seller reserves the right to restrict participation in the sale process, including if any legal obstacles prevent the investor from obtaining a controlling share in the company, e.g. relating to anti-trust regulations.

    Investors who wish to participate in the sale process are asked to contact Arion Bank - Corporate Advisory. They are asked to submit a confidentiality agreement on the required form. Participants will be provided with sales material, available as of Monday 11 April 2011.

    Indicative offers can be submitted to Arion Bank - Corporate Advisory until 12.00 GMT on Monday 2 May 2011. Offers are to be submitted on the required form.

    The offers will then be evaluated and selected investors invited to continue to the next stage. These investors will get access to further information on the operations and financials of the company before binding offers are requested and final agreements are reached on the sale and purchase of the company.

    The seller reserves the right to i) amend the terms and/or criteria of the sale process, and/or ii) enter into agreements with any offeror of its choice, or to reject all offers.

    Further information

    Further information on the sale process can be obtained from Arion Bank - Corporate Advisory by sending an email to fyrirtaekjaradgjof.BMV2011@arionbanki.is.