Samherji Holding requests an exemption from mandatory bid obligation in Eimskip

Friday, March 20, 2020

Eimskip has received following notification from Samherji Holding ehf.:

Samherji Holding ehf., a company affiliated with Samherji, has submitted a notice to the Central Bank of Iceland's Financial Supervisory Authority, requesting an exemption from mandatory bid obligation after the company exceeded the 30% threshold in ownership in Eimskip.

On the 10th of March, it was announced that Samherji Holding had increased its stake in Eimskip by 3.05% and controlled a 30.11% stake in the company after the acquisition. Samherji Holding announced plans to send other shareholders of Eimskip takeover bids for their shares within four weeks as required by law.

In a letter to the Central Bank of Iceland's Financial Supervisory Authority on the 20th of March, Samherji Holding requested an exemption from the takeover obligation due to the unique circumstances that had arisen in the financial market due to the spread of Covid-19. In the Securities Transactions Act, the Financial Supervisory Authority is authorized to grant such an exemption under special circumstances.

Samherji Holding's request states that uncertainty related to the spread of Covid-19 has created an unprecedented situation in the Icelandic economy.

 "In just a few days, the entire economic environment has changed dramatically, well beyond what was projected. The impact is widespread and has had a chain-reaction across the financial market and the economy as a whole. We do not think it wise to issue a takeover bid in the current turmoil. We all hope that the situation will be better sooner rather than later. Our belief in Eimskip's future has not changed," says Björgólfur Jóhannsson, the interim CEO of Samherji Holding.

The matter is now under review by the Central Bank of Iceland's Financial Supervisory Authority. It may set conditions for the exemption, for example, regarding the deadline to sell shares in excess of 30% and voting rights during that period.

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