Significant Investment in Alfesca
This combined with the new equity investment means that Alfesca is well prepared for further development and acquisition opportunities despite the difficult market conditions.
29/05/08 The board of directors of Alfesca are pleased to announce that Alfesca has entered into a letter of intent with a significant non-Icelandic investor under which the investor intends to invest an amount equal to €48.3 million by subscribing for new shares in the equity capital of the Company. The investment cements the close and constructive dialogue that has been taking place between Alfesca and the prospective investor for some time.
The investment will be made by subscribing for 850,000,000 new shares at the subscription price of ISK 6.45 per share, implying a discount of 6.9% against the closing price of ISK 6.93 on Friday 23 May, and will represent 12.6% of the enlarged capital of the Company.
Following the new legislation recently passed by Althingi, the parliament of Iceland, regarding taxation of capital gains, the investor intends to establish a holding company in Iceland through which the shares in Alfesca will be held.
Alfesca currently benefits from a strong balance sheet with an equity ratio of 47.4% as at 31 March 2008. This combined with the new equity investment means that Alfesca is well prepared for further development and acquisition opportunities despite the difficult market conditions.
It is intended that the investment will be completed in the coming weeks. Further details will be announced in due course.
