Kvika banki hf.


Kvika banki hf: Two provisos in Kvika, TM and Lykill Merger Agreement fulfilled

On 23 February 2021 Kvika banki hf. ("Kvika" or "the Company") disclosed that Kvika, TM hf. And Lykill fjármögnun hf. had signed a merger plan for the companies. Therein, it was also provided that the following provisos in the original merger agreement of 25 November 2020 were yet to be satisfied:

  1. that the Financial Supervisory Authority of the Central Bank of Iceland ("FME") give its consent for the merger, cf. Art. 106 of the Act on Financial Undertakings, No. 161/2002;
  2. that FME grant its approval for Kvika to own a qualifying holding in TM tryggingar hf, TM líftryggingar hf. and Íslensk endurtrygging hf., cf.  Art. 58 of the Act on Insurance Activities, No. 100/2016;
  3. that the Competition Authority will not invalidate the merger or impose onerous conditions, in the opinion of the merging parties, cf. Chapter V of the Competition Act, No. 44/ 2005; and
  4. that shareholders approve the merger, as provided for in Art. 93 of the Public Limited Companies Act, No. 2/1995, at legally convened shareholders' meetings of Kvika, TM and Lykill.

Today, on 26 February 2021, FME came to the conclusion that Kvika qualified as holder in TM tryggingar hf., TM líftryggingar hf. and Íslensk endurtrygging hf. Furthermore, the Competition Authority today concluded that it would not intervene in any way with the merger of the three companies.

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