An agreement for the purchase by Landsbankinn of TM tryggingar hf. (“TM”) from Kvika Bank was signed today.
Landsbankinn’s purchase offer for TM, dated 15 March 2024, was subject to the outcome of a now completed due diligence process. A legal opinion by external consultants, concerning the authority of the then Board of Directors of the Bank to take the decision to make an offer for TM, has also been completed. The purchase is contingent on approval by the Icelandic Competition Authority and the Financial Supervisory Authority of the Central Bank of Iceland. The Bank will assume operation of the company once such approval is obtained.
The purchase price for TM is ISK 28.6 billion, as specified in the offer. The final consideration for the company depends on a closing adjustment on the date the Bank assumes operation of TM.
Lilja Björk Einarsdóttir, CEO of Landsbankinn:
“The purchase of TM by the Bank opens numerous opportunities and we are excited to welcome TM’s personnel to our strong team here at the Bank. Our aim is to simplify life for customers by offering all financial services in one place and I am convinced that the Bank’s profitability targets for the purchase will be achieved.“
Jón Th. Sigurgeirsson, Chairman of the Board of Directors of Landsbankinn:
“The due diligence on which the purchase agreement is based has now been completed. The Board of Directors of Landsbankinn has obtained a legal opinion confirming the authority of the then Board of Directors of the Bank to approve the submission of a binding purchase offer on 15 March 2024. It is good that a decision has been reached about Landsbankinn’s purchase of TM.“
