Íslandsbanki has today sold 63.5% of its holding in Borgun hf. to Salt Pay Co Ltd. As part of this transaction, Salt Pay Co. will also purchase the holding owned by Eignarhaldsfélagið Borgun slf. Following the transaction, Salt Pay Co. will own 95.9% of shares in Borgun.
The purchase price is confidential, and the transaction will have a negligible impact on the Bank’s operations. After adjusting for the sale of Borgun, Íslandsbanki’s consolidated fee and commission income for 2019 would have been 13% lower, its expenses would have been 13% lower and its cost to income ratio would have been four percentage points lower. The sale has a positive impact on the Bank’s capital ratios and liquidity ratios will reduce slightly on a consolidated basis, although the liquidity ratios are still well above the Bank’s targets and regulatory requirements.
The formal sale process began early in 2019, as was announced by Íslandsbanki on 11 January 2019 and a sales agreement was signed on 11 March 2020. The sale was an open and transparent process led by Swiss based investment banking firm Corestar Partners and Íslandsbanki’s Corporate Finance department.
Íslandsbanki wishes Borgun and its new owners all the best for future operations.
Established in 1980, Borgun hf. issued the first credit cards in Iceland. The company currently employs a staff of just over 130 encompassing three functions: credit card issuance for Íslandsbanki and Aur; acquiring, which takes place in six countries (Iceland, the United Kingdom, Hungary, the Czech Republic, Slovakia, and Croatia); and lending, including loans for goods and services purchases through a number of merchants. Ali Mazanderani and Daniela Mastrorocco take seat in Borgun‘s board of directors.
Salt is a global payments company which currently serves merchants and consumers across fourteen countries. Amongst its products and services are market leading loyalty and CRM solutions which complement Borgun's existing offering.
Salt Pay Co’s management has extensive international experience in the payments and financial technology industry.