News
Change in Ownership Structure
On February 13 the largest shareholders of Geysir Green Energy announced a change in ownership structure of the company that will bolster the company’s rapid expansion in the geothermal sphere. Two existing shareholders, Glitnir Bank and VGK-Hönnun, are increasing their share while FL Group has shifted its investment strategy to focus on its core businesses and will be divesting its share in Geysir Green Energy.
FL Group’s former 43.1% stake was sold for a total of ISK 10.5 billion to Atorka, Glitnir Bank and engineering firm’s VGK-Hönnun’s investment arm, VGK Invest. The new structure is as follows:
Atorka's subsidiary, Renewable Energy Resources, now holds a 43.8% stake, Glacier Renewable Energy Fund, an investment fund managed by Glitnir Bank, holds 42.4%, VKG Invest owns 10.8%, Bar Holding has a 2% stake and Reykjanes municipality holds 1% in Geysir Green Energy.
FL-Group transferred 18.4% of its stake in Geysir Green Energy into the Glacier Renewable Energy Fund (GREF), a green investment fund managed by Glitnir Funds hf., which invests in renewable energy projects. Glitnir's current investment in Geysir Green Energy will be shifted into the Glacier Renewable Energy Fund bringing its total share in Geysir Green Energy to 42.4%.
Atorka has increased its share in Geysir Green Energy by about 11.5%, through its company Renewable Energy Resources (RER). Atorka now holds 42.8% stake in the company. The total purchase price of their shares was ISK 2.7 billion; the buy was financed with property sale and has therefore no influence on the company's financial position which remains very strong.
Geysir’s Board of Directors will meet within a few days to finalize the Annual Report and discuss the resulting changes in the Board.
Alongside this shift our shareholders have decided to increase share capital in order to pursue our pipeline projects more aggressively which is a positive for our company. We have worked closely with FL Group in the past and they have offered us invaluable support in our first year of operation. We are pleased they will continue to be involved in Geysir through their ownership in GREF and Glitnir Bank.
Magnús Bjarnason, EVP International Banking. "The foundation of Geysir Green
Energy was one year ago was new chapter in Glitnir's geothermal strategy; Glacier Renewable Energy is another large step in the development of our niche strategy. We have been approached by number of investors that would like to co invest in our niche strategy; Glacier is ideal product for those investor and new and exciting chapter in Glitnir business development".
Jón Sigurdsson, CEO of FL-Group: "FL-Groups decision to sell its stake in Geysir is a part of the company’s revised strategy concerning investments outside nuclear investments. Geysir has prospered under FL-Groups leadership and grown considerable in a short amount of time. Geysir's future is bright and we trust Atorka Group and Glitnir Bank for the future of the company, they possess specialized knowledge in the field of environmental energy. FL Group will continue to have vested interest in Geysir Green Energy as primary investor in Glitir Bank.
Magnús Jónsson, CEO of Atorka Group: "We are pleased to increase our share in Geysir Green Energy because we believe in the company and foresee great investment opportunities in geothermal energy. Great deals of projects are ahead in this field where Geysir and its subsidiaries remain strong on the international market".
For further information, please contact Ásgeir Margeirsson at 665 2055.