Kaupthing IKr48.8 billion private placement of Arion Bank shares

Overview:

• Former Icelandic bank Kaupthing has completed the placement of 582,922,113 ordinary shares in Arion Bank, through subsidiary Kaupskil, to Goldman Sachs International (through a wholly owned subsidiary) and funds managed by Attestor Capital, Och-Ziff Capital Management Group and Taconic Capital Advisors.
• The placement has an aggregate value of greater than IKr48.8 billion.
• The transaction reduces Kaupthing's interest in Arion Bank to 57.9% of its issued share capital. The other shareholders are now Icelandic State Financial Investments (13%), Attestor Capital (9.99%), Taconic Capital Advisors UK (9.99%), Och-Ziff Capital Management Group (6.6%) and Goldman Sachs International (2.6%).
• The deal also grants the investors options in respect of 437,191,585 additional shares of Arion Bank (representing 21.9% of the issued share capital), which are exercisable at a premium to the price paid in the private placement and expire prior to any potential offering of Arion’s shares to the public.
• It is the largest ever equity portfolio investment in Icelandic history.

Jon Moore - Journalist