In recent weeks, the Executive
Committee on Privatisation has been working on the sale of certain assets and
liabilities of the Agricultural Loan Fund, and, in accordance with the work and
time schedules of the Committee, offers will be opened on Friday, 30 September
of this year, at two p.m. at Radisson SAS Saga Hotel - Sunnusalur.
In order to secure transparency the Executive Committee on
Privatisation will open the offers in the presence of all offerors. Furthermore,
the media are also invited to attend the opening.
The following is an outline of the offering process:
On 10 May of this year the Althing, through the enactment
of Act No. 68/2005, amending Act No. 68/1997 on the Agricultural Loan Fund,
authorised the Minister for Agriculture to sell all the assets of the
Agricultural Loan Fund and negotiate the taking over of its liabilities. On 20
June the Minister for Agriculture instructed the Executive Committee on
Privatisation to take charge of preparations for the sale.
In the month of July, the Executive Committee on
Privatisation published, in Iceland and abroad, a call for participation in a
pre-selection procedure for the tendering of the assets and liabilities of the
Fund. The notice specified the conditions to be met by participants for
eligibility in the pre-selection procedure. On 12 August, the Executive
Committee on Privatisation announced that five investors had submitted
applications for participation in the tendering process and that three of these
parties – Íslandsbanki hf., Kaupthing Bank hf. and Landsbanki hf. – met all the
conditions of the Committee for further participation.
On 26 August, following the signature of a declaration of
confidentiality, the participants in the tendering procedure were delivered
tendering documents which included a detailed description of the arrangements
of the sale. Furthermore, information meetings have been held with participants
and they have been granted further access to documents on the premises of the
Agricultural Loan Fund in Selfoss.
The tendering procedure calls for evaluation of offers
based on the highest price, but the Executive Committee on Privatisation
reserves the right to refuse all offers if they prove unacceptable. Furthermore,
the procedure assumed that a purchase agreement would be prepared concurrently
with the tendering process; the contract has now been completed and sent to the
participants in the tender in the form of a final draft. No further
negotiations are foreseen following the opening of the tenders. Execution of a
purchase agreement is scheduled for next week, and payment should be effected
on the delivery of the sold property following approval by the Financial
Supervisory Authority and the Competition Authority.
Reykjavík, 30 September 2005
Executive Committee on Privatisation