From Iceland — Magma Makes Additional Payment of HS Orka, Despite Government Freeze

Magma Makes Additional Payment of HS Orka, Despite Government Freeze

Published August 18, 2010

Magma Energy purchased more of HS Orka, despite the Icelandic government putting a freeze on the transfer pending an investigation into the legality of the sale.
According to a press release sent yesterday, Magma Energy announced that their puppet company – Magma Energy Sweden, created to circumvent Icelandic investment laws – now holds an 84.21% interest in HS Orka. They add “Magma Sweden’s previously announced agreement to acquire Geysir [Green Energy]’s remaining 14.32% interest in HS Orka has not yet closed and remains subject to certain outstanding closing conditions, which are expected to be met in the near term.”
Those “certain outstanding closing conditions” would include the fact that the Icelandic government last month put a freeze on the transfer of ownership of HS Orka pending the findings of a government committee investigating the legality of the sale. The committee was supposed to submit their findings by now, but were given an extension by the Prime Minister’s office. They are expected to submit a ruling around the end of the month.

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