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.
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
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
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%.
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.
mission of Burdaras is to increase shareholder value by investing in companies
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
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
Fridrik Johannsson, CEO
of Burdaras, tel. +354 578 7801,
Eirikur S. Johannsson,
CEO of Kaldbakur, tel. +354 460 2904.