Alterra Power, formerly Magma Energy, has sold a stake in the energy company HS Orka to fourtenn pension funds. Under the agreement, the funds buy a 25 percent stake in HS Orka for 4.63 per share. The purchase price amounts to ISK 8.1 billion. The pension funds also have an option to buy new shares in HS Orka at 5.35 per share and if the option is exercised in full the total stake of the funds in HS Orka will be 33.4 percent. The agreement also includes the funds' right to subscribe for up to half of the total shares in HS Orka by subscribing to new shares that HS Orka may issue in the future.
The pension funds have established a separate holding company for the stake in HS Orka that has been named Jarðvarmi. Jarðvarmi will nominate two of the five directors of HS Orka. Strong minority protection, active participation in the board and formal participation in all major decisions on behalf of the company are among the terms of the transaction and remain in place indefinitely, provided that Jarðvarmi holds at least 22.5 percent of the share capital of HS Orka.
Saga Investment Bank managed the sale process.
