Strengthening Orkan's Share Capital for Future Growth
Strengthening Orkan's Financial Position
In a recent development, the acquisition of Samkaup by Orkan IS ehf. has progressed significantly. This follows the fulfillment of certain key conditions outlined in the purchase agreement, emphasizing Orkan's strategic move to enhance its holdings. The agreement highlights the purchase of shares from Kaupfélag Suðurnesja, which corresponds to a substantial 51.3% of the total share capital in Samkaup.
Acquisition Agreement Overview
In addition to securing shares from KSK, Orkan has reached agreements with other shareholders of Samkaup, aiming to unify ownership under its umbrella. These agreements are concluded on terms consistent with those set forth for KSK, ultimately leading Orkan to an impressive ownership stake of approximately 96% in the company's share capital. Recent negotiations have elevated this stake to an astounding 98.5%, reflecting Orkan's commitment to expanding its influence in the market.
New Share Capital Subscription
Recently, a pivotal agreement was struck with Íslandsbanki, which has committed to underwriting a new subscription for Orkan’s share capital, targeting a minimum of ISK 2 billion. This injection of capital is intended to fortify Samkaup's financial standing, better positioning the company for growth and innovation. The underwriting commitment is designed to remain valid for a duration of 180 days, providing a strategic marketing opportunity to engage potential investors, thus enhancing investor confidence in the newly structured group.
Regulatory Approvals and Next Steps
As of now, all conditions associated with Orkan’s purchase agreements have been met, with the exception of obtaining approval from the Competition Authority. This approval is essential to ensure that the transaction does not violate merger regulations as stipulated in Article 17 of the Competition Act. A merger notification has been duly submitted and we anticipate confirmation soon.
Frequently Asked Questions
What is the main purpose of the new share capital?
The new share capital aims to strengthen the financial position of Samkaup, enabling enhanced growth and operational capabilities.
How much of Samkaup does Orkan own now?
Orkan currently holds approximately 98.5% of Samkaup after completing agreements with various shareholders.
What conditions remain for the acquisition to be finalized?
The only remaining condition is approval from the Competition Authority to ensure compliance with merger regulations.
What is the duration of the underwriting commitment?
The underwriting commitment provided by Íslandsbanki is valid for 180 days.
Who can provide further information regarding this acquisition?
For more details, individuals can reach out to Ásgeir Helgi Reykfjörð Gylfason via email.
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