Fossar acted as advisor in the merger of Samkaup, Heimkaup, Orkan and Lyfjaval
A journey that began in December 2023 with SKEL’s acquisition of a 5% stake in Samkaup, has now concluded with the merger of Samkaup, Heimkaup, Orkan and Lyfjaval.
Samkaup and Heimkaup have been legally merged, and a new parent company, Drangar hf., will hold stakes in Samkaup, Orkan, and Lyfjaval. The merger creates a new challenger in the retail market, consisting of approximately 70 grocery stores, 72 Orkan energy stations, 12 Löður-branded car washes, and 8 pharmacies across the country. The company also operates the online store Heimkaup. The combined turnover of these companies was around ISK 75 billion last year.
The transaction is based on a combined equity valuation of ISK 19.3 billion for Drangar and a total enterprise value excluding lease liabilities of ISK 27.3 billion. The goal is for Drangar to be listed on the Iceland Stock Exchange before the end of 2027. Preparations have also begun for a share offering in Drangar to further strengthen the financial position of the group for future growth, with investor presentations starting in September.
Fossar Corporate Finance has acted as advisor to SKEL and its subsidiaries throughout the transaction, while legal counsel was provided by BBA/Fjeldco. Fossar congratulates the shareholders and other stakeholders on the transaction and thanks everyone involved for a pleasant collaboration.
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