Skeljungur hf.: The board of directors of Skeljungur hf. has made a decision to enter into exclusive discussions with Sp/f Orkufelagid, on the sale of all the shares in P/F Magn, Skeljungur’s Faroese subsidiary

Last 18 June a notice was published to the effect that Skeljungur had received and reviewed non-binding offers to buy P/F Magn, Skeljungur’s subsidiary in the Faroe Islands, and that Skeljungur’s board of directors had decided to enter into discussions with selected bidders.

Following these discussions the board of directors has decided to enter into exclusive negotiations with Sp/f Orkufelagid, a company led by Ben Arabo, Teitur Poulsen and Tommy Næs Djurhuus, on the sale of all Skeljungur’s shares in its Faroese subsidiary, P/FMagn, on the basis of Sp/f Orkufelagid´s offer.

The sale is expected to be finalized in November 2021.

If the negotiations should lead to a sale, the total selling price will amount to ISK 12.3 billion; the final amount will be net of debts taken over by the buyer, the cost of the sale and other financial balancing. Taking the above into account, the selling price of the shares will amount to ISK 10 billion, which is ISK 6.2 billion above the shares’ book value. The net interest-bearing debt of the Group will be reduced by ISK 2.1 billion, and cash will increase by ISK 10 billion with the sale. Amounts are based on an exchange rate of DKK/ISK = 20.

Magn’s total income in the first half of 2021 amounted to ISK 8,627 million, while the Group’s total income amounted to ISK 22,667 million. P/F Magn’s EBITDA in the first six months of 2021 amounted to ISK 929 million, while the Group’s EBITDA amounted to ISK 1,584 million.

The possible sale of P/F Magn is subject to the approval of a shareholders’ meeting and other conditions that the parties may agree on.

Further news may be expected in the near future.

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