Iceland halts Islandsbanki sale over transparency concerns (updated)
19/04/2022 14:21
(Adds details, background)
COPENHAGEN, April 19 (Reuters) - Iceland said on Tuesday a
sale of the state's remaining share in Islandsbanki ISB.IC
would not go ahead as planned due to lack of transparency in a
sale of the bank's shares last month.
The government said the National Audit Office and the
central bank's Financial Supervision Authority had begun
investigating the sale of a 22.5% stake in Islandsbanki,
formerly Glitnir, after public criticism of the process.
"The implementation of the sale did not fully meet the
government's expectations, including transparency and clear
disclosure of information," it said in a statement. urn:newsml:reuters.com:*:nL2N2VQ0HE
"No further sale of the state's shares in Islandsbanki will
be undertaken at this time," the government said.
As a result of the criticism, the government has proposed to
parliament that ISFI be abolished and a new body be established
to manage the state's holdings in financial companies.
The state sold off 35% of Islandsbanki last year in
Iceland's largest ever initial public offering, a major step in
reducing state ownership of the banking sector well over a
decade after it imploded during the 2008 financial crisis.
In January, state holding company Icelandic State Financial
Investments (ISFI) got permission to sell its remaining 65%
stake, of which 22.5% were sold last month at 117 Icelandic
crowns per share for a total of 52.65 billion Icelandic crowns
($407 million) in an oversubscribed auction.
In last year's offering the value of shares sold amounted to
55.3 billion Icelandic crowns ($427 million).
($1 = 129.4600 Icelandic Crowns)
(Reporting by Jacob Gronholt-Pedersen; Editing by Kirsten
Donovan and Alexander Smith)