Iceland-based Kaupthing Bank has reached an agreement with foreign banks regarding underwriting its upcoming stock offering. Up to 200 million new shares in Kaupthing will be offered for sale with the total worth of at least ISK 180 billion (USD 2.9 billion, EUR 2 billion).
Kaupthing Bank is expected to release details of the agreement tomorrow.
According to Morgunbladid, a large part of the stock offering will go to American equity group JC Flowers & Company as payment for the Dutch bank NIBC, which Kaupthing acquired last summer.
American financial company JP Morgan, along with other Kaupthing Bank associates, will also be offered shares in Kaupthing according to a special agreement.
The condition of Kaupthing’s liquid capitals is estimated as good thanks to the merger with NIBC and despite the current situation of the Icelandic stock market.