OMX and Eignarhaldsfelagid Verdbrefathing hf (EV), the owner of Iceland Stock Exchange (ICEX) and Icelandic Securities Depository (ISD) have signed a Letter of Intent regarding an acquisition of EV. The transaction is the next step in realizing the vision of an integrated Nordic and Baltic securities market and establishing the OMX Nordic Exchange as a leading European marketplace.
The intention is to announce the signing of a formal agreement before the end of October. An offer will subsequently be submitted to the shareholders of EV, whereby the consideration to EV’s shareholders shall be approximately 2,07 million newly issued shares in OMX, corresponding to a valuation of ISK 2,450 million (SEK 250 million) excluding surplus cash and marketable securities. Based on EV the balance sheet as of June 30, 2006, surplus cash and marketable securities are approximately ISK 570 million, which are anticipated to be dividended to EV shareholders prior to closing. The transaction is expected to close before the end of the year.
“We are pleased to be participating in the further integration of the Nordic and Baltic securities markets which serves listed companies and investors alike. ICEX listed companies will gain increased visibility and be able to benchmark against a larger peer group. Furthermore, we expect more international members to participate in the Icelandic market thereby enhancing the liquidity. At the same time the Nordic list will benefit from the addition of some of the fastest growing companies in the Nordic region. The combination should also broaden the investment alternatives for Icelandic investors. All in all, this combination presents promising opportunities for the Icelandic securities market” says Thordur Fridjonsson, General Manager of EV and President and CEO of ICEX.
“We look forward to taking our cooperation to the next level and welcoming the Icelandic marketplace into the OMX Nordic Exchange. We are creating an integrated Nordic home market to increase intra-Nordic trading and improve the attractiveness to international investors. It is very encouraging to contribute to the increased visibility of Icelandic companies as they will join the common Nordic list, OMX’s information services and OMX-wide indices”, says Jukka Ruuska President business area Nordic Marketplaces OMX.
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