Hagar hf. - Company Announcement

Eignabjarg sells 13,3% shareholding in Hagar hf. for ISK 2,8 billion

Investors subscribed for a total of ISK 7,9 billion

The private placement of shares in Hagar hf. closed at 5:00 p.m. yesterday, 29
February. Arion Bank's Investment Banking division managed the placement. The
shareholding was sold by Eignabjarg ehf, a subsidiary of the Bank. 



Eignabjarg sold 162,253,609 shares to investors, which corresponds to 13.33% of
Hagar hf's issued share capital. The placement raised proceeds of ISK 2.8
billion. The highest accepted price offered by investors was ISK 17.2 per share
and the lowest accepted price without reduction offered by investors was ISK
17.05 per share. Investors' offers with the price of ISK 17.0 per share were
reduced by 50% and lower offers were declined.  The offering attracted bids
from investors totalling ISK 7.9 billion. The private placement was held in
accordance with Art. 50 (1) of Act no. 108/2007 on Public Limited Companies 



Following the sale Eignabjarg owns 5.98% of issued share capital in Hagar, but
the decision of the seller for the eventual size of the shareholding to be sold
was based on the bids submitted by investors. As disclosed in prior
announcement, the Financial Supervisory Authority had confirmed that it has no
objection to Eignabjarg retaining up to a 10% interest in Hagar after the sale. 



For further information please contact:

Haraldur Guðni Eiðsson, Communications, Arion Bank on +354 856 7108

Halldór Bjarkar Lúðvígsson, Managing Director of Investment Banking, Arion Bank
on +354 856 6541