Prior to the sale Landsbanki held 13,643,280 shares in Carnegie. The shareholding was acquired as a part of trading assets received in the merger with the investment company Burdaras hf. announced on 2 August 2005. The sale is consistent with Landsbanki's strategy of actively managing its trading portfolio positions, realising capital gains when appropriate and focusing the bank's effort on integrating international operations.
Landsbanki will realise a capital gain of approximately ISK 10 billion (EUR 110 million) from the sale. According to IFRS the position has been marked to market and the sale will therefore not have a material impact on Landsbanki's second quarter results as the gains are already accounted for in Landsbanki's accounts for 2005 and the first quarter of 2006.
The shareholding in Carnegie was Landsbanki's single largest equity holding for its own account or approximately 25% of the total position. This sale will reduce Landsbanki's equity holdings to around 3% of Landsbanki's total assets and have a significantly positive effect on the bank's capital ratio (CAD).
Sigurjon Th. Arnason, Landsbanki's joint Group Managing Director and CEO said: "This sale demonstrates Landsbanki's ability to successfully manage its trading portfolio in a manner which is consistent with the bank's long standing strategy of profitably investing in projects or companies which offer the bank the expectation of superior returns while continuously maintaining the overall risk characteristics within prudent levels."
Halldor J. Kristjansson, Landsbanki's joint Group Managing Director and CEO said: "During our relationship with Carnegie we have come to admire its operations as a leading independent Nordic investment bank and its ability to deliver superior financial performance in volatile markets. As we now sell our stake we wish the company all the best going forward."
The shares were sold to international institutional investors through an accelerated bookbuilding offering. Deutsche Bank managed the offering as sole bookrunner with Carnegie having been appointed as selling agent.