When BankNordik in 2009 acquired 51 % of the shares in the Icelandic non-life insurance company Vørður Tryggingar hf. BankNordik granted a put option to the non-controlling shareholder holding the remaining 49 % of the shares in Vørður Tryggingar hf.
The non-controlling shareholder has now informed BankNordik that it has exercised the put option according to which BankNordik shall acquire the 49 % of the shares in Vørður Tryggingar hf.
BankNordik has accepted to acquire the 49 %-stake and looks forward to see the company continue it’s steadily improving Icelandic insurance business.
BankNordik and the non-controlling shareholder do, however, not agree on the exercise price, and in order to settle this disagreement the parties have agreed to appoint an independent arbitrator.
It is the firm intention of the parties that the matter is settled before the end of Q2 2012, and it is expected that the exercise price will be within the range of ISK 1,370m and ISK 1,520m. Taken into account that BankNordik is expected to make use of the Icelandic Central Bank’s investment scheme enabling foreign investors to get a discount on the exchange rate when making investments in Iceland the range in ISK may correspond to an investment in DKK between DKK 51m and DKK 56m. The investment scheme is, however, in the form of currency auctions held by the Icelandic Central Bank and the exact discount on the exchange rate is, therefore, not known before the auction has been held. The next currency auction is scheduled to take place on the 28 March 2012.
Further information
For further information please contact CEO Janus Petersen, tel +298 330 340, or CFO Árni Ellefsen, tel +298 330 348 and ir@banknordik.fo.
BankNordik was founded over 100 years ago in the Faroe Islands. The Group has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands and Iceland. The Group has 180,000 customers, total assets of DKK 17 billion and 600 employees. The Bank is subject to the Danish Financial Services Authority and is listed on NASDAQ OMX. www.banknordik.fo