365 hf. puts its 87% share in Saga Film into new company operating in 7 contries. 365 hf. has decided to merge Saga Film business and its subsidiaries with European Film Group business, company Baugur Group hf. has recently bought. New company will be established, European Film Group ehf. (EFG ), and Saga Film and European Film Group will be subsidiaries of that company. 365's share in Saga Film was 87% and Baugur's share in Saga Film was 13% and 100% in the newly bought company. 365 will gain 63% in the new company and Baugur 37%. European Film Group II A/S is conglomerate of 9 commercial film production companies in the Nordic region. It operates in Denmark, Sweden, Norway and Finland. All EFG subsidiaries will be managed independently and will be operated in Iceland, Scandinavia, UK and Czech Republic. Estimated turnover 2007 for all the companies is about 3,5 billion ISK but it will only be managed by the united company for 4 months. The merges will not affect 365's total debts and increased business and extension of the business to Scandinavia will not call upon further financial commitments from 365. Ari Edwald the CEO of 365 says: “The emergence of this new company will create more distance between Saga Film and 365 and more independency for Saga Film. Saga Film will now be part of multi-national company with operation in seven countries. Most of the companies are the biggest in their sector on the market and well managed. Saga Film has wider operation than the other companies, such as event management and services with film production. The other companies are mainly in the commercial film production. There will be opportunity for increased value of the united company by enlarging the supply of services from all its subsidiaries. Saga Film has been doing well with event management in UK through 2AM and many Icelandic companies have used the service. Therewithal it creates opportunity for cooperation in production of commercial- and television materials and sharing of work force. It also increases the chance of acquiring bigger markets for production for particular entities within the group.”