The boards of directors of SR-mjöl hf. and Sildarvinnslan
hf. will propose a merger of the companies to shareholders, dating from 1
January 2003. The boards of the two companies signed an agreement to this
effect at a meeting held earlier today.
to the agreement, shareholders of SR-mjöl will receive 40% of the stock of the
merged company and 60% will be owned by Sildarvinnslan shareholders. This
division ratio is based on detailed calculations of the capitalisation of
earnings of the companies.
The merger is expected to be carried out
by increasing the stock of Sildarvinnslan and providing shareholders in SR-mjöl
with Sildarvinnslan shares in return for their stock in SR-mjöl.
The boards of directors of the
companies will now undertake a closer examination of specific aspects of the
merger. It is expected that this work and the preparation of a merger plan will
be completed by mid-January 2003.
News release from SR-mjöl hf. and
Tuesday 17 December 2002.
For further information, please contact:
Kristinn V. Jóhannsson, chairman of the board
of directors of Sildarvinnslan hf., tel: 896 9989
Finnbogi Jónsson, chairman of the board of
directors of SR-mjöl hf.,tel: 897 5767