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Burdaras acquires a majority holding in Kaldbakur   28.9.2004 11:31:56
News categories: Major holdings   Insider trading      Íslenska  English
An agreement has been concluded for Burdaras hf

An agreement has been concluded for Burdaras hf.’s purchase of a 76.77% share in the investment company Kaldbakur hf. The sellers are Samherji hf., selling a 25.00% share, Baugur Group hf., selling a 24.76% share, and Samson Global Holdings Ltd., selling a 27.01% share. Before this purchase, Kaldbakur had bought the entire share of KEA in Kaldbakur and sold that share to Samson Global Holdings Ltd., which has now sold its share to Burdaras, as mentioned above.

Under the agreement, the sellers receive shares in Burdaras as payment for their shares in Kaldbakur at the rate of a 0.63784 share in Burdaras for each share in Kaldbakur.  The purchase is made subject to majority approval by a Shareholders’ Meeting of Burdaras for the issue of new shares to the sellers and other shareholders in Kaldbakur who will be offered to sell their shares at the same terms to Burdaras. If the Shareholders’ Meeting approves such a share capital increase, Burdaras’ share capital will rise by up to ISK 1,119,047,931.

Prior to this transaction Samson Global Holdings Ltd. owned ISK 747,659,282 of shares in Burdarás or 16.84%.  Prior to this transaction Samherji owned ISK 263,675 of shares in Burdarás.  Baugur Group did not own shares in Burdarás prior to this transaction.In continuation of these transactions, both companies aim to hold shareholders’ meetings to effect their merger.

The merged company of Burdaras and Kaldbakur will be a powerful one, with increased capacity for larger-scale activities in Iceland and overseas. The combined Shareholder’s equity of the two companies is approximately ISK 36.7 billion, based on their interim financial statements from 30 June 2004.  The combined market capitalisation of the two companies, based on closing prices on 23 September, is approximately ISK 80 billion.  Their performance has been favourable so far this year. Burdaras’ return on equity was 69% on an annualised basis during the first half of 2004, and Kaldbakur’s return on equity during the same period was 49%.

The Corporate Advisory section of Landsbanki Íslands (The National Bank of Iceland) provided consultancy services to Burdaras for the purchase.


This notification is in part based on Art. 28 (1) of the Act no. 33/2003 point(s) no. 1


About Burdaras hf.

The mission of Burdaras is to increase shareholder value by investing in companies in Iceland and overseas. Its focus is on activities where Burdaras is a leading investor with active management responsibility. Burdaras invests in the shares of listed and unlisted companies, particularly in selected industry sectors. Also, the company invests short- and long-term to make use of opportunities in the securities market.

Burdaras aims to achieve a healthy return on equity, while at the same time spreading risk and ensuring stability in its operations. The company strives to be among Iceland’s foremost investment companies. Burdaras’ key financial objectives are to maintain return on equity at an average of approximately 15% per year, and a 35-45% equity ratio based on the estimated market value of the company’s assets, depending on its portfolio’s liquidity and risk profile.


Further details can be obtained from


Fridrik Johannsson, CEO of Burdaras, tel. +354 578 7801,




Eirikur S. Johannsson, CEO of Kaldbakur, tel. +354 460 2904.