Brief: Kvika Banki To Buy Majority Share In Ortus

Kvika banki

25/10/2021 08:15

Oct 25 (Reuters) - Kvika banki hf  KVIKA.IC :
    * SAID ON SUNDAY HAS AGREED HEADS OF TERMS WITH SHAREHOLDERS
AND
MANAGEMENT TEAM OF ORTUS SECURED FINANCE LTD. (ORTUS) TO ACQUIRE
MAJORITY SHAREHOLDING IN ORTUS
    * ORTUS IS A BRITISH ALTERNATIVE CREDIT PROVIDER
SPECIALISING IN
PROPERTY BACKED LENDING TO BORROWERS IN THE UNITED KINGDOM
    * THE HEADS OF TERMS, SIGNED BY THE PARTIES, ASSIGN A
VALUATION OF
ISK 4.2 BILLION ($32.58 MILLION) EQUIVALENT TO ORTUS' ORDINARY
SHARE CAPITAL, OF WHICH KVIKA SECURITIES OWNS JUST OVER ISK 600
MILLION 
    * ADDITIONALLY IT IS EXPECTED THAT KVIKA WILL PURCHASE ALL
ISSUED
PREFERRED SHARES IN ORTUS
    * THE CONSIDERATION WILL BE PAID IN CASH, WITH NO ISSUANCE
OF NEW
SHARES REQUIRED OWING TO THE BANK’S STRONG CAPITAL POSITION
    * THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE NEXT
FEW
MONTHS
    * IF THE TRANSACTION PROCEEDS, KVIKA GROUP’S TOTAL
CONSOLIDATED
ASSETS ARE EXPECTED TO GROW BY 10%
    * FOLLOWING THE ACQUISITION, FUNDING SYNERGIES ARE EXPECTED
TO
SUBSTANTIALLY LOWER ORTUS’ COST OF FUNDING
    * ONCE THE ACQUISITION HAS BEEN COMPLETED, KVIKA WILL OWN
CLOSE TO
80% OF THE EQUITY IN ORTUS

 Source text for Eikon:  urn:newsml:reuters.com:*:nGNE5VPZSP
 Further company coverage:  KVIKA.IC  


($1 = 128.9200 Icelandic Crowns)

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))