Íslandsbanki has today sold 63.5% of its holding in Borgun hf. to Salt Pay Co Ltd. As part of this transaction, Salt Pay Co. will also purchase the holding owned by Eignarhaldsfélagið Borgun slf. Following the transaction, Salt Pay Co. will own 95.9% of shares in Borgun.
The purchase price is confidential, and the transaction will have a negligible impact on the Bank’s operations. After adjusting for the sale of Borgun, Íslandsbanki’s consolidated fee and commission income for 2019 would have been 13% lower, its expenses would have been 13% lower and its cost to income ratio would have been four percentage points lower. The sale has a positive impact on the Bank’s capital ratios and liquidity ratios will reduce slightly on a consolidated basis, although the liquidity ratios are still well above the Bank’s targets and regulatory requirements.
The formal sale process began early in 2019, as was announced by Íslandsbanki on 11 January 2019 and a sales agreement was signed on 11 March 2020. The sale was an open and transparent process led by Swiss based investment banking firm Corestar Partners and Íslandsbanki’s Corporate Finance department.
Íslandsbanki wishes Borgun and its new owners all the best for future operations.
About Borgun:
Established in 1980, Borgun hf. issued the first credit cards in Iceland. The company currently employs a staff of just over 130 encompassing three functions: credit card issuance for Íslandsbanki and Aur; acquiring, which takes place in six countries (Iceland, the United Kingdom, Hungary, the Czech Republic, Slovakia, and Croatia); and lending, including loans for goods and services purchases through a number of merchants. Ali Mazanderani and Daniela Mastrorocco take seat in Borgun‘s board of directors.
About Salt:
Salt is a global payments company which currently serves merchants and consumers across fourteen countries. Amongst its products and services are market leading loyalty and CRM solutions which complement Borgun's existing offering.
Salt Pay Co’s management has extensive international experience in the payments and financial technology industry.
Further information can be obtained from:
PR: Edda Hermannsdóttir, Director of Marketing and Communications at Íslandsbanki, by e-mail at pr@islandsbanki.is or by telephone at +354 844-4005.
IR: Margrét Lilja Hrafnkelsdóttir, Head of Investor Relations at Íslandsbanki, by e-mail at ir@islandsbanki.is or by telephone at +354 844-4033.
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About Íslandsbanki
Íslandsbanki is a universal bank and a leader in financial services in Iceland with a history of 145 years of servicing key industries. The Bank has a 25-40% market share across all domestic business segments. Íslandsbanki's purpose is to move Iceland forward by empowering our customers to succeed. Driven by the vision to be #1 for service, Íslandsbanki's relationship banking business model is propelled by three business divisions that manage and build relationships with the Bank's customers. Íslandsbanki has developed a wide range of online services such as the Íslandsbanki and Kass apps, enabling customers to do their banking anywhere and anytime. At the same time, the Bank continues to operate the most efficient branch network in Iceland through its strategically located 12 branches. Íslandsbanki has a BBB/A-2 rating from S&P Global Ratings. www.islandsbanki.is
Disclaimer
This press release may contain “forward-looking statements,” involving uncertainty and risks that could cause actual results to differ materially from results expressed or implied by the statements. Íslandsbanki hf. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. It is the investor's responsibility to not place undue reliance on these forward-looking statements which only reflect the date of this press release. Forward-looking statements should not be considered as guarantees or predictions of future events and all forward-looking statements are qualified in their entirety by this cautionary statement.