Eignabjarg plans to sell a minimum 10% shareholding in Hagar

Eignabjarg ehf., a subsidiary of Arion Bank hf., has decided to offer for sale a minimum of 10% shareholding in Hagar hf. The shareholding will be sold in a private placement in accordance with Article 50.1b of the Securities Transactions Act no. 108/2007 and will be managed by Arion Bank's Investment Banking division. The private placement is expected to be completed before 1 March.

The eventual size of the shareholding to be sold depends on the bids submitted by investors. Eignabjarg currently owns 19.3% in Hagar. The Financial Supervisory Authority has confirmed that it has no objection to the Bank’s retaining up to a 10% interest in Hagar after the sale.

The settlement between Arion Bank and the Competition Authority concerning the Bank’s acquisition of 95.7% of share capital in Hagar is still applicable. However, under an agreement with the Competition Authority the Bank is obliged to complete the sale of the acquired shares by 30 June 2012.