Samkaup hf. signed a letter of intent to acquire Orkan IS ehf, Löður Ehf., Lyfjaval ehf, Heimkaup ehf. from Skel fjárfestingafélag hf..

Samkaup hf. signed a letter of intent to acquire Orkan IS ehf, Löður Ehf., Lyfjaval ehf, Heimkaup ehf. from Skel fjárfestingafélag hf.

(ICSE:SKEL) on May 15, 2024. The exchange ratio in the proposed merger is 58.1:41.9, meaning that the shareholders of the merging companies will receive 281,256,454 shares in Samkaup, while Samkaup will acquire all shares of the merging companies. Post merger, the estimated number of outstanding shares in Samkaup will be ISK 671,256,454 at nominal value.

These exchange ratios will be adjusted based on cash balances, interest-bearing liabilities, and net current assets (current assets/current liabilities) as of the reference date. SKEL currently holds a 5% stake in Samkaup through Eignarhaldsfélagið Bjarmi ehf.; consequently SKEL's expected share in the merged company will be 42.7%. The letter of intent is subject to various conditions, including the outcome of due diligence process, approval from regulatory bodies, contract finalization and approval from shareholders' meetings of the companies.

A binding merger agreement is targeted to be signed after due diligence, with the reference date for the merger set for the end of the third quarter. Deloitte ehf act as accountant and Fossar Investment Bank hf. act as financial advisor have assessed potential synergies resulting from the merger.