SKEL fjárfestingafélag hf.: Statement signed for the exploratory merger negotiations of Samkaup, Heimkaup, and Orkan.
20 January 2024 - 4:17AM
SKEL fjárfestingafélag hf.: Statement signed for the exploratory
merger negotiations of Samkaup, Heimkaup, and Orkan.
SKEL fjárfestingafélag hf.
("SKEL") and Samkaup hf., id. 571298-3769
("Samkaup") have signed a joint statement on the
launch of exploratory negotiations toward a potential merger
between Samkaup and certain companies in the SKEL group.
Samkaup operates 64 grocery stores across
Iceland with four brands (Samkaup, Nettó, Kjörbúðin and
Iceland), ranging from discount to convenience stores.
Orkan IS ehf. ("Orkan")
operates 72 fuel stations, 14 car washing stations under the Löður
brand, 6 fast charging stations, 2 hydrogen stations, and 1 methane
station. In addition to this, the company owns 32 properties and
lots throughout the country, along with other assets.
Heimkaup ehf. ("Heimkaup")
which operates 7 pharmacies under the Lyfjaval brand and 9
convenience stores under the 10-11, Extra and Orkan brands, as well
as other properties.
SKEL believes that merging the companies will
create a financially robust company with a strong market share in
key markets that have essential products.
Retail (food): Samkaup has a wide-reaching
network and a strong position in many parts of the country. The
parties estimate that Samkaup's turnover could significantly
increase with the addition of Heimkaup's retail units. The merger
would result in great synergy opportunities for both companies,
enabling them to invest and strengthen their positions in the
fiercely competitive retail market.
Fuel, charging stations and washing: Orkan has a
strong market share in the fuel market and strives to become a
leader in energy transition. Löður also has a strong position in
the car wash market.
Drugs and medicine: Lyfjaval is the only company
that operates drive-through drug stores. The company has ambitious
plans for growth and aims to differentiate itself in the market.
There is a growing demand for this service, and the company plans
to respond to it.
The parties have agreed to exclusivity for the
duration of the exploratory negotiations. The expected date for the
results of these negotiations is 22 March 2024, at the latest. If
the parties agree to proceed with the merger, they will sign a term
sheet outlining the main terms, after which formal negotiations
will commence.
Ásgeir Helgi Reykfjörð Gylfason, CEO of
SKEL:
"SKEL sees great potential in the merger of
Samkaup, Orkan, Lyfjaval, Löður and Heimkaup. The combined entity
would be financially robust, with an optimal distribution of income
and around 150 outlets spread across the country. The merger would
generate an annual turnover of around 80 billion and would enable
the company to capitalize on the current retail market trends to
benefit its customers, employees, and shareholders. SKEL believes
that the merged company would be an interesting investment option,
and listing its shares on the Nasdaq Iceland Main Market would be
an optimal choice.
Furthermore, it is essential that the combined
company preserves its current values and roots and continues to
cater to the distinct requirements of its customers while remaining
actively involved in regional and local communities throughout the
country.”
For more information, please contact Ásgeir
Helgi Reykfjörð Gylfason at fjarfestar@skel.is"
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