REYKJAVIK, Iceland, April 27, 2006 (PRIMEZONE) -- Landsbanki Islands hf. ("Landsbanki") has today sold a total of 13,643,280 shares in D. Carnegie & Co AB ("Carnegie") for approximately ISK 21.8 billion (EUR 237 million). The sale represents 19.8% of the issued shares in Carnegie. Landsbanki will have no ownership interest in Carnegie following completion of the sale. The transaction price was SEK 162 per share.
Prior to the sale Landsbanki held 13,643,280 shares in Carnegie. The shareholding was acquired as a part of trading assets received in the merger with the investment company Burdaras hf. announced on 2 August 2005. The sale is consistent with Landsbanki's strategy of actively managing its trading portfolio positions, realising capital gains when appropriate and focusing the bank's effort on integrating international operations.
Landsbanki will realise a capital gain of approximately ISK 10 billion (EUR 110 million) from the sale. According to IFRS the position has been marked to market and the sale will therefore not have a material impact on Landsbanki's second quarter results as the gains are already accounted for in Landsbanki's accounts for 2005 and the first quarter of 2006.
The shareholding in Carnegie was Landsbanki's single largest equity holding for its own account or approximately 25% of the total position. This sale will reduce Landsbanki's equity holdings to around 3% of Landsbanki's total assets and have a significantly positive effect on the bank's capital ratio (CAD).
Sigurjon Th. Arnason, Landsbanki's joint Group Managing Director and CEO said: "This sale demonstrates Landsbanki's ability to successfully manage its trading portfolio in a manner which is consistent with the bank's long standing strategy of profitably investing in projects or companies which offer the bank the expectation of superior returns while continuously maintaining the overall risk characteristics within prudent levels."
Halldor J. Kristjansson, Landsbanki's joint Group Managing Director and CEO said: "During our relationship with Carnegie we have come to admire its operations as a leading independent Nordic investment bank and its ability to deliver superior financial performance in volatile markets. As we now sell our stake we wish the company all the best going forward."
The shares were sold to international institutional investors through an accelerated bookbuilding offering. Deutsche Bank managed the offering as sole bookrunner with Carnegie having been appointed as selling agent.
For further information, please contact:
Landsbanki Tel. +354 410 4009
Joint Group Managing Director and CEO Halldor J. Kristjansson
Joint Group Managing Director and CEO Sigurjon Th. Arnason
This announcement is not an offer of securities for sale in the United States, Australia, Canada, Japan or any other jurisdiction where such activity is unlawful and there will be no public offer of the shares in the United States, Australia, Canada or Japan or any other jurisdiction where such activity is unlawful. There will be no public offer of the securities in any jurisdiction in circumstances which would require the publication of a prospectus or equivalent. The shares referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under the securities laws of any state of the United States, and may not be offered or sold in the United States or to US persons absent registration or an applicable exemption from such registration. In the United Kingdom, this press release is directed only at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Financial Promotion Order"), (ii) persons falling within any of the categories of persons described in Article 49 of the Financial Promotion Order and (iii) any other persons to whom it may otherwise lawfully be made. Persons of any other description should not act upon this document. The shares will not qualify for distribution under any of the relevant securities laws of Canada or Japan, nor has any prospectus been lodged or registered in Australia with the Australian Securities and Investments Commission.