Merger of Fossar Investment Bank and VIS Insurance

VÍS Insurance (Vátryggingafélag Íslands hf.) and the shareholders of Fossar Investment Bank have now signed a share purchase agreement where VÍS will buy all outstanding shares in Fossar. The purchase is made on the basis of a letter of intent regarding the merger of the companies.

According to the purchase agreement, Fossar’s shareholders will receive 245 million new shares in VÍS, or 12.62% of total shares in VÍS after the increase in share capital. New shares are subject to a 3 year lock up from settlement. The purchase is subject to conditions, such as the approval of regulatory bodies and the approval of VÍS’s shareholders’ meeting.

Should the transaction go through, the combined entity will be a powerful financial company in a strong position to take advantage of growth opportunities in the market with a broad operating license. The combined entity will have a 106 year history, diverse client base, strong fundamentals and a powerful network within the economy and financial sector locally. The strong infrastructure will enable the company to provide an outstanding level of service in the insurance segment, investment banking, private banking, fund management and other tailored financial services. The main benefits from the merger are expected to be found in the opportunities for growth as opposed to cost cutting measures.

When the transaction is completed, Haraldur Þórðarson will be appointed CEO of VÍS alongside Guðný Helga Herbertsdóttir. Haraldur will be responsible for the group’s strategic development, banking and financial services, and Guðný Helga will be responsible for insurance operations. 

The group’s future structure is still being formulated, but there will be an emphasis on profitable growth, increasing and strengthening the sources of income, governance and the sharing of operational elements. It is assumed that Haraldur Þórðarson will manage the group’s overall operations, Guðný Helga Herbertsdóttir will manage insurance operations, Steingrímur Arnar Finnsson the investment banking and Arnór Gunnarsson SIV asset management.

More information is provided by: Erla Tryggvadóttir, communications director of VÍS, by phone 660-5260 and by email erlat@vis.is