Fredensborg ICE ehf. has acquired 99.45% of Heimavöllum hf., signaling a strategic expansion within the Icelandic real estate sector.

Target Information

Fredensborg ICE ehf. has successfully acquired 99.45% of Heimavöllum hf., finalizing the transaction with shareholders on April 6, 2020. The offer was valid until June 15, 2020, and it attracted 242 shareholders, representing approximately 24.32% of the total shares in Heimavöllum. Prior to the takeover, Fredensborg ICE held a stake of 73.93%, which has now increased to 98.25% following the settlement of the transaction, and ultimately to 99.45% when factoring in treasury shares.

With the completion of this acquisition, Fredensborg ICE ehf. now controls over 90% of the voting rights in Heimavöllum hf. Consequently, Fredensborg and the board of Heimavöllum have decided to exercise their squeeze-out rights under Article 110 of the Securities Transactions Act. The redemption price has been set at ISK 1.5 per share, which aligns with the offered takeover price and will be paid in cash. Notifications regarding the redemption will be sent to affected shareholders in the coming days.

Industry Overview

Heimavöllum hf. operates within the Icelandic market, focusing primarily on the real estate sector. The country has witnessed a fluctuating real estate market, greatly influenced