Iceland sells 22.5% stake in Islandsbanki (updated)

Islandsbanki hf

23/03/2022 09:06

(Adds detail, background)
    COPENHAGEN, March 23 (Reuters) - Iceland's state holding
company on Wednesday said it had sold shares in lender
Islandsbanki  ISB.IC  worth 52.65 billion Icelandic crowns ($408
million) in an oversubscribed auction. 
    Islandsbanki, formerly Glitnir, was one of three lenders
that failed within days of each other in 2008, prompting a state
takeover.
    A total of 22.5% of Islandsbanki's outstanding share capital
was sold, corresponding to 450 million shares, which were sold
at 117 Icelandic crowns per share, Icelandic State Financial
Investments (ISFI), said in a statement. 
    "The offering was multiple times oversubscribed at the final
offer price with substantial interest from both domestic and
international investors," ISFI said. 
    As part of efforts to normalise Iceland's financial sector
and reduce the state's ownership, Iceland sold a third of its
stake in Islandsbanki in June last year, the largest initial
public offering in the country's history.  urn:newsml:reuters.com:*:nL5N2NY16W 
    The finance ministry last week authorised ISFI to sell its
remaining 65% stake in Islandsbanki in several steps. 
    After the auction, which was initiated on Tuesday, the state
owns a 42.5% stake in Islandsbanki.   
    The transaction will be finalised on March 28.  
    ($1 = 129.0400 Icelandic Crowns)

 (Reporting by Nikolaj Skydsgaard; editing by Louise Heavens and
Jason Neely)
 ((Nikolaj.Skydsgaard@thomsonreuters.com;))