Festi hf. completed the acquisition of Lyfjaval ehf from Lyfsalinn ehf. for ISK 6.8 billion.
July 09, 2024
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Festi hf. (ICSE:FESTI) signed an agreement to acquire all shares of Lyfjaval ehf from Lyfsalinn ehf. for ISK 7.7 billion on March 17, 2023. The consideration will be paid in 10 million shares and ISK 6 billion cash.The deal is subject, among other things, to the following conditions: (i) that an agreement is reached on the final purchase agreement (ii) due diligence is carried out (iii) financing of the transaction (iv) that the buyer's shareholders' meeting approves the use of share capital for the transaction (v) the approval of the Icelandic Competition Authority. If agreed, the transaction is expected to close in the 1st quarter of 2024. The preliminary conclusions in the Icelandic Competition Authority?s investigation into the competitive effects of Festi?s purchase on the entire share capital of Lyfja hf. It is stated therein that the merger will, based on the current state of the investigation, require intervention by the Icelandic Competition Authority. As on March 26, 2024,Festi has now submitted a response to the Icelandic Competition Authority?s preliminary conclusions where Festi?s arguments and proposals for remedies are presented. The response formally requests a conciliation talks with the Icelandic Competition Authority on possible remedies associated with the acquisition. Festi?s request is now under evaluation by the Icelandic Competition Authority. As on May 14, 2024, The Icelandic Competition Authority has agreed to Festi?s request that the deadline for investigating the competitive effects of Festi?s acquisition of all shares in Lyfja hf. will be extended by twenty (20) working days from 21 May 2024. Accordingly, the Competition Authority?s deadline to complete the investigation is 19 June 2024 at the latest. Furthermore, Festi, as the buyer, and SID ehf., as the seller, have signed an agreement that stipulates that the defined long-stop date according to the parties? purchase agreement is 1 July 2024 instead of 15 May 2024. As on June 14, 2024, the merger has been approved by the Icelandic Competition Authority. The transaction is anticipated to take place early in July 2024.
Festi hf. (ICSE:FESTI) completed the acquisition of Lyfjaval ehf from Lyfsalinn ehf. for ISK 6.8 billion on July 10, 2024. The purchase price for the acquisition amounted to ISK. 7,116 million, based on the company's preliminary financial statements, which is divided into a cash payment in the amount of ISK 5,076 million and the delivery of 10 million shares. Festi took out a new loan for the acquisition, which will increase the Group's leverage by ISK 4,000 million. Further details about the transaction and its financing will be provided in connection with the publication of the Company's 2nd quarter results on July 31, 2024.
Festi hf, formerly N1 hf, is an Iceland-based retail and service company. It provides fuel, supplies, refreshments and recreational products through its distribution system. It offers targeted product range and business, aviation and marine services. It operates a chain of stores, and service and vehicle maintenance stations. It is divided in two segments: Fuel and Other goods. It sells jet and aviation fuel at the Keflavik and Reykjavik airports, as well as provides aviation operating goods, such as lubricants for propellers and hydraulic system oils. Additionally, it operates marine service stations and provides fuel, lubrication and operational products to vessels located in the north Atlantic. It also supplies contractors, food companies and farmers with a range of goods, such as hand tools, work clothing, chemicals, cleaning products, spare parts and tires. Its network comprises over 100 outlets: service areas, shops, and petrol and vehicle maintenance stations.
FESTI HF. 
