Merger between REI and GGE Invalid? Skip to content

Merger between REI and GGE Invalid?

The merger agreement between Reykjavík Energy Invest (REI) and Geysir Green Energy (GGE) may not have been completed before it was agreed on at a Reykjavík Energy (OR) board and owner meeting last October 7, raising questions on its legality.

According to Morgunbladid, some details of the agreement had not been clear before the meeting and after it was held, negotiators from FL Group and Reykjavík Energy (OR) completed the agreement and made some amendments.

Morgunbladid also claims that a special appendix had not been prepared before the meeting, in which it is stated that REI shall be privileged to service from OR for the next 20 years.

A lawyer who specializes in the economic matters, who wishes to remain anonymous, said it is possible that the merger agreement between REI and GGE is only a letter of intent, because the legal merger process had not been observed.

Other lawyers approached by Morgunbladid, who also wish to remain anonymous, agreed that many arguments indicate that the contract is, in fact, invalid.

Originally it was planned that REI would confirm the merger process at a board meeting yesterday, but that did not happen. If nothing else delays the process, the merger is expected to be finalized a few weeks from now.

A multi-partisan investigative committee called to look into the legality of the merger, which is headed by Left-Green Reykjavík City Council member Svandís Svavarsdóttir, is expected to submit its results before REI confirms the merger process, if the steering group is planning to stop the process.

A City Council meeting will be held Tuesday of next week and results may be expected before then, Morgunbladid predicts.

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