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Published: 2018-02-15 09:16:25 CET
Arion banki hf.
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Arion Bank agrees to buy back 9.5% stake in the Bank

Arion Bank hf. has agreed to a buyback of 9.5% of issued share capital in Arion Bank from Kaupskil ehf, a subsidiary of Kaupthing ehf.   

The decision to accept the offer from Kaupskil is in line with the decision taken at a shareholders' meeting on 12 February to amend the Bank’s articles of association with a temporary authorization for the board of directors to buy back shares issued by the Bank. 

Settlement is expected to take place on 21 February 2018. The offer by Kaupskil to Arion Bank is conditional upon final settlement between Kaupskil and the Icelandic government concerning Kaupskil's exercise of a call option on the Icelandic government's 13% share in Arion Bank. If the condition is not met on the settlement date, Kaupskil can delay the settlement by up to ten days. If final settlement is concluded after 21 February there will be a recalculation of the purchase price according to Kaupthing’s original agreement with the Icelandic Government. Kaupskil’s call option is based on an agreement with the Icelandic government dated 3 September 2009.

Arion Bank is paying ISK 90.087 a share which is the same price that Kaupskil is paying the Icelandic government under the call option. The total purchasing price is ISK 17.1 billion and will be deducted from the dividend payment of ISK 25 billion approved by the shareholders’ meeting on 12 February.

For further information please contact Haraldur Gudni Eidsson of Arion Bank's Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 856 7108.