TM enters into exclusive negotiations with Klakki ehf. on the purchase of Lykill fjármögnun hf.
Klakki ehf., which is the owner of Lykill fjármögnun hf., has decided to enter into exclusive negotiations with Tryggingamiðstöðin hf. (TM) in relation to the proposed sale of the entire issued share capital of Lykill fjármögnun hf.
Lykill fjármögnun is a finance company that operates as a lending institution according to the laws on financial undertakings nr. 161/2002. It has its headquarters in Reykjavík and offers multiple ways for financing vehicles, properties and other liquid assets for individuals and companies.
If the exclusive negotiations leads to an agreement TM will pay 9,250 billion kr. in cash to Klakki plus a payment equal to the amount of distributable after-tax-profit of Lykill for the operating year 2019. The proposed transaction is subject to various conditions, such as due diligence and its outcome, the approval of TM shareholders' meeting, as well as the approval of the Financial Supervisory Authority of Iceland and the Icelandic Competition Authority.
The parties intend to conclude the exclusive negotiations in 8 weeks.