Arion Bank and Kvika enter merger discussions
On Friday 4 July, the board of directors of Arion Bank reiterated its interest from 27 May to the board of Kvika banki hf. to enter merger negotiations. The board of directors of Kvika has agreed to the request of the board of Arion and both parties have signed a Letter of Intent.
The letter of intent proposes that for its shares in Kvika shareholders get new shares in Arion bank representing 26% of the merged entity, a total of 485,237,822 shares, representing a share price of ISK 19.17 per share in Kvika and a share price of ISK 174.5 per share in Arion Bank. A fair adjustment to the exchange ratio is expected to be made if any distributions are made by the companies to shareholders prior to the effective date of the merger.
It is expected that merger discussions will commence in the coming days. The merger of the two banks would be subject to both regulatory approval and the approval of shareholders’ meetings for both entities.
The opportunities arising from the merger of the two banks are numerous, both for customers and shareholders. Should the outcome prove positive, a strong bank will be formed, exceptionally well equipped to meet the diverse financial needs of individuals, businesses, and investors.