29. June 2023

Announcement on discontinuation of merger negotiations with Íslandsbanki hf.

In the past months negotiations on the possible merger of Íslandsbanki hf. („Íslandsbanki“) and Kvika banki hf. („Kvika") have continued and the companies, along with foreign and domestic advisors, have worked on evaluating possible synergies and the position of a merged company on the market. 

As a result of that work, Kvika's board of directors is of the opinion that a merger would create significant value. The discussions between the companies have been good, though they have not yet led to a muntual conclusion on exchange rates. 

In light of the events of the past few days and the fact that a shareholder meeting will likely be called at Íslandsbanki with a possible election of its board of directors, Kvika's board of directors have decided to discontinue merger negotiations. However, it is clear that the benefits of a merger of the companies could be significant, and Kvika's board has expressed its willingness to restart negotiations if conditions arise.