SPRON Shareholders Accept Merger with Kaupthing Skip to content

SPRON Shareholders Accept Merger with Kaupthing

The vast majority of shareholders of SPRON savings bank agreed on a merger with Kaupthing Bank at a meeting yesterday. With the merger, SPRON shareholders will acquire shares in Kaupthing and Exista investment company.

The currency rate of shares in SPRON was estimated at ISK 3.83 (USD 0.05, EUR 0.03) per share, which is 15 percent higher than the currency rate on June 30 when a declaration of intent on the merger was signed between the two banks, Fréttabladid reports [07.08.08].

“It was a sensible step considering the current circumstances,” said SPRON CEO Gudmundur Hauksson after the meeting. The merger also has to be accepted by the Financial Supervisory Authority (FME) and the Competition Authority.

If the merger takes place, SPRON will continue to operate under the same brand with the same employees, although Hauksson said some employees may have to be laid off following the merger.

At the meeting, Hauksson reviewed the financial situation at SPRON in light of the current economic problem Iceland is facing. Hauksson pointed out that SPRON’s competitive position was not comparable to the three commercial banks: Kaupthing, Glitnir and Landsbanki. Therefore it was necessary to improve the bank’s access to funding, Hauksson said.

Some shareholders expressed their dissatisfaction with the merger with Kaupthing Bank, but in the end it was accepted with 83.68 percent voting in favor of the merger, 16.23 percent voting against it and 0.08 percent abstaining.

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