Fossar Investment Bank and VIS Insurance enter into merger talks

The shareholders of Fossar Investment Bank and VIS Insurance (Vátryggingafélag Íslands hf.) have decided to begin negotiations on the purchase by VÍS of all shares in Fossar Investment Bank on the basis of a letter of intent regarding the merger of the companies.

The companies believe that the proposed merger will strengthen their position as a forerunner in the Icelandic financial market.

It is expected that the shareholders of Fossar Investment Bank will receive 260 million new shares in VÍS for its shares, which amounts to 13.3% of the total capital of the merged entity. The purchase will be subject to various conditions, such as the results of due diligence, the approval of the regulatory bodies and the approval of the VÍS shareholders’ meeting.

The combined company would be a powerful financial company in a strong position to take advantage of growth opportunities in the market. The company would have the financial strength, excellent staff and strong infrastructure for excellent services in the fields of insurance, lending, brokerage, corporate consulting, asset management, fund management and specialized financial services.

In the beginning, it is proposed that Haraldur Þórðarson, CEO of Fossar Investment Bank, and Guðný Helga Herbertsdóttir, CEO of VÍS, will jointly lead the company. The group’s future structure will be explored in the coming weeks, taking into consideration growth, governance and optimization.

Haraldur Þórðarson, CEO of Fossar Investment Bank:

„Fossar Investment Bank has been on the offensive in recent years and has served foreign investors in the field of market trading, corporate consulting and asset management. Last year, the company received an investment banking license, which led to great opportunities in services and activities in the financial market. The merger of VÍS and Fossar Investment Bank represents an exciting opportunity ─ as the companies are in an optimal position for growth in the Icelandic financial market.“

For more information please contact:

Haraldur Þórðarson, CEO of Fossar Investment Bank, email: haraldur.thordarson@fossar.is, tel: +354 832 4001

Stefán H. Stefánsson, Chairman of Board VÍS, email: stefan.stefansson@vis.is, tel: +354 820 6303