19 September 2010

FIH to be sold to a consortium of ATP, PFA, Folksam and CP Dyvig

The Central Bank of Iceland (Sedlabanki Islands) (“Sedlabanki”) currently has a pledge on 99.89% of the shares (the “Shares”) in FIH Erhvervsbank A/S (“FIH”), granted by Kaupthing as security for a loan given by Sedlabanki to Kaupthing in October 2008 amounting to 500 million euros. On 18 September 2010, an agreement with a consortium consisting of ATP, PFA, Folksam and CP Dyvig (the “Consortium”) has been entered into whereby the Consortium has agreed to acquire the Shares.

The purchase price is DKK 5 billion (670 million euros) and consists of (i) a cash payment of DKK 1.9 billion (255 million euros), (ii) an earn-out payment of up to DKK 3.1 billion (415 million euros) that shall be adjusted for actual losses incurred by FIH until 31 December 2014, originating from the balance sheet as of 30 June 2010, as well as adjusted for FIH’s potential gain on its holding in the Axcel III fund, and (iii) an additional earn-out payment dependent on the Consortium’s realised gain on its investment in FIH at latest on 31 December 2015.

“We see this transaction as a good outcome for the parties involved given the circumstances. When the transaction will be completed Sedlabanki will receive a substantial amount of foreign currency, and will also get a possibility over the medium term to recover the rest of the loan granted in 2008”, said the Governor of Sedlabanki Mar Gudmundsson.

Completion of the transaction is subject to the relevant regulatory approvals.

J.P. Morgan acted as financial advisor and Kromann Reumert and Lex acted as legal advisors to Sedlabanki.

Further information can be obtained from Már Guðmundsson, Governor of the Central Bank of Iceland, at tel: +354 569-9600.

No. 26/2010
September 19, 2010