Iceland Pension Funds Consider HS Orka Acquisition Skip to content

Iceland Pension Funds Consider HS Orka Acquisition

Representatives of the Icelandic pension funds will discuss with the Icelandic government today whether they should acquire Reykjavík Energy’s stake in HS Orka and become lead investors in the energy company instead of Canadian Magma Energy.

Harnessing geothermal energy in Iceland. Photo by Páll Stefánsson.

The goal is for Icelanders to become majority owners in the company and that its profits will remain in the country to as large an extent as possible, Fréttabladid reports.

However, domestic parties are not considered capable of buying the entire share in which Magma is interested.

Neither RARIK (the State Electric Power Works) nor the state are in the picture as investors in HS Orka, while the Icelandic pension funds could prove a viable option.

Arnar Sigmundsson, chair of the National Association of Pension Funds, said the pension funds have not made a final decision on whether or not to invest in HS Orka and that they are waiting from further information from the government.

Magma Energy’s offer in Reykjavík Energy’s share in HS Orka expires tomorrow.

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