...STOCKHOLM (S&P Global Ratings) March 21, 2017--S&P Global Ratings said today that Sunday's announcement of a private placement sale of 29.1% of Iceland-based Arion Bank (###/Positive/A-2) by Kaupthing ehf to a consortium of U.S. and U.K. investors has no immediate implications for its ratings or outlook on Arion Bank. Following the transaction, Kaupthing will maintain its majority 57.9% ownership share in the bank and the Icelandic government its 13% stake. The new owners have the option to increase their aggregate stake by an additional 21.9% at a higher price, prior to an expected IPO of the bank. The transaction allows Kaupthing to prepay an Icelandic krone (ISK) 84 billion (about 712 million) secured note held by the Icelandic government, providing further resolution to the historical links between the state, Kaupthing, and Arion Bank. While we consider this transaction, and foreign investment into the Icelandic banking sector, to be a significant step for the future of Arion Bank,...
