Kvika banki hf: The Board of Kvika banki hf. approves merger discussions with Arion banki hf.
The Board of Kvika banki hf. has approved the request from the Board of Arion banki hf. to initiate formal merger discussions between Kvika banki hf. and Arion banki hf. A letter of intent to that effect has been signed by both parties.
In the ongoing merger discussions between the companies, it is proposed that the price per share in Kvika bank will be set at ISK 19.17 and ISK 174.5 per share for Arion bank in the anticipated merger. As such, shareholders of Kvika will receive 485,237,822 new shares in the merged entity, reflecting 26% ownership. A reasonable adjustment of the exchange ratio is expected in the event of a distribution made by the companies to their shareholders prior to the effective date of the merger.
The negotiations are expected to take place over the coming weeks, and further updates will be provided as appropriate and in accordance with the bank's statutory disclosure obligations.
Please note that this notice is a disclosure of inside information per article 7 of regulation (EU) No 596/2014 on market abuse (“MAR”), which is implemented into Icelandic law with the act on measures against market abuse No 60/2021.
