Reykjavík Energy to buy shares in Reykjanes Electrical Station? Skip to content

Reykjavík Energy to buy shares in Reykjanes Electrical Station?

By Iceland Review

The board of Reykjavík Energy (OR) will discuss a potential purchase of the Electrical Station on Reykjanes peninsula (HS). The mayor of Reykjanesbaer is dissatisfied with OR’s intervention; the town is the largest shareholder in HS.

The chairman of OR’s board, Gudmundur Thóroddsson, told Morgunbladid some of HS’ shareholders have requested that OR buy their shares in the plant and that the topic will be discussed at a board meeting today.

According to Morgunbladid’s sources, OR has offered to pay ISK 7 (USD 0.11, EUR 0.08) per share in HS, which is almost five percent higher than what Geysir Green Energy offered when the Icelandic state put its 15 percent share in HS on sale in the end of April.

Geysir Green Energy, which is owned by FL Group, Glitnir, VGK Design and Reykjanesbaer township, made the highest bid at the time, but the HS’ shareholders have the first right to buy the state’s share of the plant. That right expires Tuesday.

Reykjanesbaer Mayor Árni Sigfússon told Morgunbladid he knew OR was trying to enter HS “through the back door” by surpassing the Geysir Green Energy’s highest bid.

“I say ‘through the back door’ because the state thought it was unnatural for another public party to buy that share and had therefore excluded that party [OR] from the buy,” Sigfússon said. “I find it regrettable that this is kept secret from the largest shareholder. I hadn’t heard about these plans until yesterday.”

Sigfússon added OR is a competitor of HS, which is also questionable in his opinion.

Hafnarfjardarbaer township is the second largest shareholder in HS. Gunnar Svavarsson, an MP and the town’s representative on HS’ board, told Morgunbladid many parties were interested in buying the state’s share in the plant.

Svavarsson expected Hafnarfjardarbaer would use its first right and buy the state’s share in HS.

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