Arion banki hf. agreed to repurchase 9.5% of its issued share capital from Kaupthing ehf unit Kaupskil ehf.
The shares will be bought back at a price of 90.087 Icelandic kronur per share, translating to a total of 17.1 billion kronur, which will be deducted from the dividend payment of 25 billion kronur approved at the Feb. 12 shareholders meeting.
The buyback is expected to conclude Feb. 21, subject to the settlement of Kaupskil's exercise of a call option on the Icelandic government's 13% holding in Arion banki at a price of 90.087 kronur per share.
Kaupskil can delay the settlement of repurchase by as much as 10 days, in which case the price will be recalculated.
As of Feb. 15, US$1 was equivalent to 100.21 Icelandic kronur.
