Eik fasteignafélag hf.: Results of the mandatory offer of Langisjór ehf. to shareholders of Eik fasteignafélag hf.
On 20 September 2024 Langisjór ehf. (the “Offeror”) made a mandatory offer to shareholders of Eik fasteignafélag hf. (“Eik”) in line with chapters X. and XI. of Act No. 108/2007 on takeovers (the “Takeovers Act“), on the terms and conditions set forth in an offer document published on the same date. (the “Offer”) The offer period expired at 1 PM GMT on 18 October 2024. Consent was received for 247.190 shares in Eik. The Icelandic Competition Authority notified the Offeror on 14 October 2024 that the transaction did not constitute a merger notifiable pursuant to the Icelandic Competition Act. Payment to shareholders who accepted the Offer and delivery of the shares to the Offeror will take place no later than on 25 October 2024.
On the day that the Offer was set forth the Offeror and partners held 1.106.281.964 shares in Eik, corresponding to 32,31% of the share capital of Eik. Following the Offer, the Offeror and partners hold 1.106.529.154 shares in Eik, corresponding to 32,32% of the share capital of Eik.
Gunnar Þór Gíslason, Managing Director of Langisjór ehf.:
"We would have liked to acquire more shares in Eik in the lead-up to and during the mandatory offer process. However, the mandatory offer was merely the first step in Langisjór’s journey to increase its influence and ownership in Eik. It has long been evident that Langisjór and its partners were close to surpassing a 30% ownership stake in Eik, necessitating a mandatory offer to other shareholders. Now, Langisjór is free to acquire a majority stake in the company without repeating that process. The timing and manner in which Langisjór increases its stake in Eik will depend on market conditions and other investment opportunities that arise.
The share price of Eik fasteignafélags had fluctuated around 10 ISK per share for most of this year, experiencing a slight uptick in small trades immediately following the publication of the company’s half-year results on August 15. Langisjór intended to increase its ownership by purchasing shares in transactions over the weekend after the publication of the interim results. This did not materialize, and subsequently, the company’s share price increased further after the mandatory offer was announced, resulting in the market price of Eik shares being somewhat higher than the offer price by the end of the process.
During the offer period, we have had the opportunity to hold many constructive meetings with the largest shareholders of Eik. We have used this platform to discuss our vision for the company’s development, organization, and future prospects with our co-owners. We find strong alignment with them on our key priorities to streamline Eik’s asset portfolio, increase dividends, and increase leverage. This alignment among the company’s shareholders allows us to look forward with optimism, as the interests of shareholders align with the journey of Eik."
Arion Bank Corporate Finance was the manager of the mandatory offer on behalf of the Offeror and BBA // Fjeldco provided legal advice to the Offeror in the offer process.
