Skeljungur hf.: Conditions removed regarding financing and due diligence relating to the sale of P/F Magn to Sp/f Orkufelagið. Skeljungur plans to invest up to 23% of the total selling price of P/F Magn in Sp/f Orkufelagið.

It was announced last 2 September that Skeljungur had made a decision to enter into exclusive negotiations with Sp/f Orkufelagið on the sale of all the shares in Skeljungur’s subsidiary in the Faroe Islands, P/F Magn, based on an offer to buy made by Sp/f Orkufelagið. 

Sp/f Orkufelagið has now declared to Skeljungur that reservations regarding financing and due diligence have either been satisfied or waived. The selling price of P/F Magn remains unchanged from the amount announced earlier, i.e. 615 million DKK, or 12.3 billion ISK. Skeljungur has decided to participate in the funding of Sp/f Orkufelagið by re-investing up to 23% of the total proceeds from the transaction in Sp/f Orkufelagið and consequently Skeljungur will own up to 49% stake in Sp/Orkufelagið.

Accordingly, the estimated impact of the transaction on Skeljungur’s financial standing is that interest-bearing debt will be reduced by 2.1 billion ISK, cash will increase by 7.2 billion ISK and its investment in Sp/f Orkufelagð will amount up to 2,9 billion ISK. Equity will increase by approx. 6 billion ISK based on the above scenario.

All of the above is subject to approval by the appropriate regulatory bodies and finalisation of documents.  The transaction is scheduled for closing in November, as announced earlier. At the time of finalisation further information will be provided regarding financial impact and Skeljungur’s involvement with Sp/f Orkufelagið.

Sp/f Orkufelagið is a Faroese company with an experienced team of energy and retail professionals. Sp/f Orkufelagið has the goal to become the leading full cycle energy provider in the Faroe Islands. Teitur Poulsen is the Chairman of Sp/f Orkufelagið.

For further information, please contact Árni Pétur Jónsson, Skeljungur CEO,