SF III signs an agreement to acquire an 82% stake in Iceland Drilling from Miðengi ehf.

SF III slhf., an investment fund operated by Stefnir hf., has signed an agreement to acquire an 82% stake in Jarðboranir hf. (Iceland Drilling) from Miðengi ehf., a subsidiary of Íslandsbanki hf. The owners of SF III are three pension funds, Festa, Gildi and LSR as well Samherji hf., and SÍA I, private equity fund operated by Stefnir hf. Miðengi ehf. will continue as a shareholder in the company and own an 18% stake. The share purchase agreement is subject to a number of conditions, including but not limited to the approval of the Icelandic Competition Authorities.

Miðengi ehf. commenced an open sales process of Icelandic Drilling in August 2011 with Íslandsbanki Corporate Finance as the advisor. The sales process was publically announced and a large number of offers were submitted from both domestic as well as international investors. The owner subsequently initiated discussions with the highest bidder which were successfully concluded with the sale to SF III.

About Iceland Drilling

Iceland Drilling is a global geothermal drilling specialist. Decades of experience in geothermal deep drilling in Iceland has brought the company invaluable experience which can be offered to customers abroad. The company is currently operating in a number of markets, such as Denmark, New Zealand, Germany the Caribbean and the Azores.

About Stefnir hf.

Stefnir hf. is the largest asset management company in Iceland with over ISK 300bn in assets under management. The company operates domestic as well as international investment funds for private and institutional clients. The company also operates SPV funds, established around specific equity investments.