Two parliamentary committees in Iceland have reportedly proposed offloading up to 35% stake in the government-owned lender Islandsbanki – also known as the Bank of Iceland.

The committees that proposed the sale include Economic and Business Affairs Committee and the Budget Committee, Reuters reported citing the local media website Kjarninn.

The proposal was sent to the Icelandic Ministry of Finance on 20 January 2021.

According to the finance ministry, the two committees intend to sell the stakes in a domestic listing planned for later this year, the report added.

In a statement, they proposed to sell a minimum of 25% and a maximum of 35% stakes in the bank.

The committees’ recommendations were agreed by most of their members.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The recommendations also included a shareholding cap between 2.5% to 3% of the total share capital offered, for each bidder that intend to purchase the bank’s stakes.

The latest move comes after the 2008 financial crisis that led to the collapse of three Icelandic lenders.

One of those banks was Islandsbanki, which acquired the Icelandic operations of Glitnir, as part of its restructuring process.

In December last year, finance minister Bjarni Benediktsson first announced the plans to list the bank.

Benediktsson said that the government is aiming to sell at least 25% of the stake in the bank in a domestic listing and raise a minimum of $250m.

The stake sale is not finalised yet. The finance minister will take the committees’ suggestions into consideration and then decide on the details of the proposed sale, the Reuters report added.