Kaupskil sells 90.7 million existing shares in Arion Bank hf.

Kaupthing ehf. announces that Kaupskil ehf. (“Kaupskil”) has today completed the sale of 90.7 million existing ordinary shares in Arion Bank hf. (“Arion Bank”), raising proceeds of approximately GBP 41.8 million (the “Transaction”). The Transaction was agreed on 4 April 2019 (the “Agreement Date”) in response to a binding offer received on 3 April 2019. The shares were priced at ISK 72 per share, representing a 1.0% premium to the stock’s closing price of ISK 71.3 on the Agreement Date. The number of shares sold in the Transaction represents 5.0% of the issued shares in Arion Bank (calculated by excluding shares owned by Arion Bank in itself).

The buyers are two entities managed by Taconic Capital Advisors LP (“Taconic”). The banks which advised Kaupskil on the accelerated bookbuild announced on 3 April 2019 (the “ABB”) agreed to lift the lock-up agreed as part of the ABB in order to allow the Transaction to occur. In addition, Taconic has agreed to a lock-up period ending on the date which is 90 days from today.

Immediately after completion of the Transaction, Kaupskil holds 362,771,629 shares in Arion Bank corresponding to 20% of the outstanding share capital in Arion Bank (excluding shares owned by Arion Bank itself).

Arion Bank will not receive any proceeds from the Transaction.