Today, 12 March 2014, Eimskip received 7,441,950 shares in Eimskipafélag Íslands hf. from A1988 hf., formerly known as HF. Eimskipafélag Íslands. The shares correspond to 3.72% of the total share capital of Eimskip.
In this respect it should be noted, as described in Eimskip’s Prospectus dated 22 October 2012 that A1988 hf. held 8,441,950 of the company’s shares, equaling 4.22% of its total share capital. These shares could not be transferred, disposed of or otherwise encumbered by A1988 hf. other than in accordance with an agreement which was entered into relating to the financial reorganization of A1988 hf. which was concluded with a composition agreement in 2009. According to the agreement, these shares are to be returned to Eimskip in the event of A1988 hf. entering into bankruptcy proceedings, the contingent claims lapsing, or A1988 hf. entering into voluntary liquidation. The reason for the making of these arrangements was to ensure that A1988 hf. would be able to honor its composition agreement if any contingent claims would crystallize.
When A1988 hf. entered into its composition agreement, a number of contingent claims existed which were mostly related to A1988 hf.’s former cold storage companies in Canada and the United States. The cold storage operations were taken over by the Yucaipa Companies as a part of A1988 hf.’s composition agreement. Now these claims have been renegotiated and A1988 hf. released from its obligations under the claims. Therefore, these shares are now transferred back to Eimskip. A1988 hf. continues to hold 1,000,000 shares and at this point in time it is uncertain when these shares will be transferred back to Eimskip. Since the date of A1988 hf.’s composition agreement no shares have been delivered to contingent or unknown creditors.
Including these shares Eimskip now holds a total of 13,360,770 shares in treasury, corresponding to 6.68% of the total share capital of the company.
Gylfi Sigfússon, President and CEO
“The return of these shares is a positive event for Eimskip as it resolves the uncertainty related to the majority of shares, enhances shareholder value and strengthens the company’s financial position. The shares are being transferred back upon the successful financial reorganization of VersaCold, led by the Yucaipa Companies.”
Eimskip runs a network of 51 offices in 19 countries and operates 16 vessels. Total number of employees is around 1,400, of which about 800 are located in Iceland. About half of Eimskip’s operating revenue comes from operations outside Iceland. The company’s vision is to provide outstanding transportation services through a dependable transport system in the North Atlantic, as well as offering extensive worldwide network of reefer logistics services.