From Iceland — Other Bids for HS Orka Leaked to Magma Energy

Other Bids for HS Orka Leaked to Magma Energy

Published May 28, 2010

According to sources reporting to RÚV, the bids being offered by other parties interested in buying Geysir Green Energy’s shares of HS Orka were leaked to Magma Energy before the sale took place.
The state broadcasting service is reporting that in the latter part of last year, a number of parties expressed an interest in buying Geysir Green Energy’s shares of HS Orka, among them Norðurál and the pension fund Framtakssjóður lífeyrissjóðanna. Íslandsbanki was in charge of mediating the sale of the shares, and informed the interested parties that the shares were for sale.
The bank allowed three parties to take part, in the end – Norðurál, Framtakssjóður lífeyrissjóðanna, and Magma Energy. RÚV reports that Magma Energy was not only informed by a still-unknown party what the other two companies were bidding for the shares, but that Magma Energy didn’t offer the highest bid. Why Magma Energy was able to purchase the shares without offering the highest bid is unknown at this time.
At the moment, the Minister for the Environment is preparing a bill for parliament that would require Magma Energy sell a large enough stake in HS Orka for them to relinquish majority control.

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