Today, the Minister for Agriculture, following
consultation with the Ministerial Committee on Privatisation, has accepted the
recommendation of the Executive Committee on Privatisation to accept offer of
Landsbanki Íslands hf. for specific assets and liabilities of the Agricultural
Loan Fund. The offer
amounted to ISK 2,653 billion, which represents the highest offer submitted.
A total of three offers were submitted. Offer Kaupþing banki hf.
amounted to ISK 2,624 billion and offer Íslandsbanki hf. amounted to ISK 2,301
A purchase agreement was drafted
concurrently with the tendering process and no further negotiations are
of a purchase agreement is anticipated 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