Íslandsbanki's Corporate Finance (“ÍSB Corporate Finance”) has been mandated to manage a formal process for the potential sale of Sjóvá-Almennar tryggingar, which is today owned 90.7% by SAT Eignarhaldsfélag and 9.3% by Íslandsbanki. Investors can make an offer for up to 100% of the share capital of the company.

The sales process is open to every investor that can be defined as a professional client according to the Act on Securities Transactions No. 108/2007 and with a net worth greater than ISK 500 million.

Interested investors need to sign a non-disclosure agreement provided below and provide information that confirms the fulfillment of the above conditions. ÍSB Corporate Finance will accept signed NDA´s from Monday, 18 January. Investors will then receive further information regarding the company. The seller reserves the right to limit the access to the sales process when legal limitations prevent the investor from owning a controlling stake in the company, e.g. due to competition rules. Investors should also note that permission from the Icelandic Financial Supervisory Authority is required to hold a controlling stake in an insurance company.

An indicative offer is to be delivered to ÍSB Corporate Finance, no later than 2:00 pm, 2 February 2010, in a sealed envelope, marked “Fyrirtaekjaradgjof/Sjova2010“.

Based on the sales materials, an indicative offer is to be delivered to ÍSB Corporate Finance, no later than 2pm, 2 February, 2010 in a sealed envelope, marked "Fyrirtaekjaradgjof/Sjova2010".

The bidders that submit the highest offers and have sufficient financial capacity will have the opportunity to participate in the second phase of the process. They will receive information in greater detail relating to the operations and financial standing of the company.

Final binding offers, subject only to due diligence investigation and regulatory approvals, must be submitted no later than 2:00 pm, 22 February 2010. All offers will be opened in the presence of an independent party.

• A short presentation of the company and the sales process is available here

Documents required for participating in the sales process

Interested investors need to fill out the following documents to obtain the right to participate in the sales process:

I. All interested investors need to fill out a non-disclosure agreement. The NDA can be found here. 

II. Legal entities and individuals need to provide the information listed in the following documents:

• Individuals
• Legal entities

III. In order to participate in the sales process, interested investors are required to provide information confirming that they fulfill the following requirements:

• Professional clients. Investors that fulfill the criteria of a professional client, according to the Act on Securities Transactions No. 108/2007
• Financial Capacity. Investors that have net worth greater than ISK 500 million.

Delivery of documents and offers

All documents concerning the sales process are to be delivered to Íslandsbanki, within the given timeframe, in a closed envelope, signed:

Íslandsbanki hf.
Kirkjusandi
155 Reykjavík
Fyrirtaekjaradgjof/Sjova2010

Estimated progression of the sales process