Festi hf.: The Icelandic Competition Authority approves merger with Íslensk orkumiðlun

All conditions precedent related to Festi‘s purchase of Íslensk orkumiðlun have now been met after the Icelandic Competition Authority has approved the merger. The transaction will be concluded without delay. The transaction entails an increase of the share capital of Festi by ISK 3,126,087, and th new shares will be transferred to the sellers of Íslensk orkumiðlun as payment for the shares of the company. Issued share capital in Festi will thus amount to ISK 332,700,000 after the increase. The owners of the new shares will be subject to a temporary prohibition on the sale of the shares. It is envisaged that the operations of Íslensk orkumiðlun will be run in parallel with the operations of N1, the energy provider of the Festi Group.

Hinrik Örn Bjarnason CEO N1:

„The purchase will strengthen N1‘s operations in renewables and related equipment, as N1 has forged a strategy to strengthen the company‘s position in those markets. We envisage that the purchase will increase shareholders‘ revenue and create exciting opportunities for the Festi Group in the near future.“

Magnús Júlíusson CEO Íslensk orkumiðlun:

„This is a milestone in the relatively short history of the company and entails a recognition of the results we have achieved so far. The market share of Íslensk orkumiðlun has steadfastly increased from the establishment of the company and we believe that the cooperation with N1 in the field of energy will provide opportunities for further growth and enable us to provide customers with increased range of services.“