Magma Energy is selling a stake in Reykjanes energy company HS Orka to a group of local pension funds, Canada’s Globe and Mail reports. According to the newspaper, the Swedish shelf company (with ties to a Vancouver firm of the same name) announced today the sale of 25% of its shares in HS Orka today for 8,06 billion ISK (71.5 million USD), which will cut Magma’s stake to 73.5%.
The story (along with Magma’s press release on the matter) states the sale prices are “roughly equivalent to what Magma paid over the past two years to acquire those shares in HS Orka […]”. It also reports that Magma will grant the Icelandic funds an option, until February 2012, to increase their stake to 33.4% at a cost of 41.7 million USD, and that the deal “gives the pension funds significant power to appoint board members and participate in major decisions in HS Orka as long as they continue to hold at least a 22.5-per-cent interest.”
More on Magma Energy and HS Orka.