Acquisition Plans for Iceland’s Arion Bank Confirmed Skip to content

Acquisition Plans for Iceland’s Arion Bank Confirmed

By Iceland Review

The resolution committee of the old Kaupthing Bank, which has now been re-branded as Arion Bank, and Iceland’s Ministry of Finance released a joint statement yesterday confirming that Arion Bank will henceforth be in 87 percent ownership of claimants, most of whom are foreign.

The Icelandic state will hold 13 percent of shares in the bank. When the bank was refinanced, the state committed itself to providing ISK 72 billion (USD 590 million, EUR 391 million) in equity but according to the new agreement, the resolution committee will provide ISK 66 billion (USD 541 million, EUR 358 million) in equity instead, reports.

The Kaupthing resolution committee also sold its 5.5 percent stake in the Norwegian insurance company Storebrand yesterday. The sale will deliver around ISK 21.3 billion (USD 175 million, EUR 116 million) to Kaupthing’s bankrupt estate and will be used to cover claims, Morgunbladid reports.

Arion Bank will become the first of Iceland’s three largest commercial banks to advertise the position of its director, reports.

An announcement from the bank reveals that the contract with its current director Finnur Sveinbjörnsson will expire at the end of this year and that Sveinbjörnsson has announced to the board of Arion Bank that he will not reapply for the position.

Click here to read more about Arion Bank going into foreign ownership.

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