- A global leader in the field of geothermal energy created
Reykjavik Energy Invest (“REI”), the business development and investment arm of
Reykjavik Energy and Geysir Green Energy (“GGE”) have announced their agreement
to merge the two companies. The merger will create a global leader in the field
of geothermal energy with the total value of ISK 65 billion, approximately EUR
745 million. The combined company will operate under the name of Reykjavik
Energy Invest and will invest in and utilize geothermal energy worldwide. The
deal is subject to closing, including approval from competition authorities.
Magnus Jonsson, the CEO of Atorka Group and Vice Chairman of Geysir Green
Energy;
“Our combined forces make us better equipped for growth on the
international market and we believe this to be a strong step in the
development of Icelandic global growth in the field of geothermal energy. The
merger
increases stake values in both companies and is therefore positive for
stakeholders in both Geysir Green Energy and Reykjavík Investment. Atorka has
been a leading force concerning investments in the Icelandic power industry and
showed vision in its development of Jardboranir as well as in other companies in
the field of renewable energy. We see excellent growth opportunities for the
new united company in the future.
Powerful combination
The merger will create a global leader in the field of geothermal energy with a
strong capital base and the management team recognised for its vision, know-how
and decades of expertise in the utilization of geothermal energy. The company
will be well-positioned to take advantage of the excellent opportunities in the
geothermal industry that present itself globally.
REI and GGE have a strong track record of joint projects and investments in
international markets, including Europe, North and South America and Asia. The
merger will further enhance their investment and project-development capacity,
as well as bring together investments in some of the world's leading energy
companies, including:
- 100% of Iceland Drilling (formerly owned by Geysir Green Energy), a world
leader in drilling and utilization of geothermal energy
- 48% share in HS (Hitaveita Sudurnesja), Iceland's third largest energy
company
- 70% share in Enex, a company working on various geothermal projects all over
the world
- 66% share in Enex China that is developing geothermal district heating
systems in China
20% share in Western GeoPower (formerly owned by Geysir Green Energy) in
Canada which is developing two geothermal power projects in North America
REI will continue working closely with Reykjavik Energy (Orkuveita Reykjavikur)
in new and existing projects. The companies have agreed on the exchange of
expertise and technology in relation to developing new geothermal projects.
International player with clear objectives
Following the merger, the total equity will equal ISK40 billion, approximately
EUR460 million. Largest shareholders include:
- Orkuveita Reykjavikur 35,5%
- FL Group 27%
- Atorka Group 20%
- Glitnir bank 6,2%
The combined company is well positioned for further growth and competition in
the international marketplace. The company has already important stakes in
geothermal companies, as described above, and is intensively working on
pursuing further investment opportunities. Hence, the company's prospects
include hundreds of megawatts of geothermal power to be in production within a
relatively short time frame.
About Reykjavik Energy Invest
Reykjavik Energy Invest (REI) (www.reykjavikenergy.com) is the Reykjavik Energy
(Orkuveita Reykjavikur) international business development and investment arm.
We bring Reykjavik Energy's expertise to our partners and investments by
focusing on creating partnerships to develop geothermal areas. REI invests in
geothermal exploitation rights as well as site development, construction and
operation of geothermal fields, and seeks to acquire geothermal plants
currently in operation. Reykjavik Energy is the world's leading authority in
the utilization of geothermal energy. We have consolidated our leadership over
the past 60 years by supplying a large portion of the Icelandic population with
geothermal water for domestic heating and by gradually developing new steam
fields for power production.
About Geysir Green Energy
Geysir Green Energy is a leading investment company within the geothermal
industry, investing in developing projects as well as geothermal operations.
Geysir has since its foundation in January 2007 invested around USD 650 million
in geothermal companies and projects around the world. Building on the
extensive experience of Icelandic geothermal companies, Geysir has received
great attention within the industry and is being recognized as a serious and
dynamic investor in the field.
About Atorka Group
Atorka Group is an investment company listed on the OMX Nordic Exchange in
Iceland. Atorka supports progressive enterprises that take advantage of
worldwide developments, assisting those companies in becoming global leaders.In
its investments, Atorka seeks out companies that have sound operation and
strong management and possess the potential for substantial internal and
external growth. The Company targets projects with considerable potential for
growth and value enhancement, aiming at investments for periods of 3-5 years.
For further information, contact Magnús Jónsson, CEO of Atorka and Vice
Chairman of Geysir Green Energy (tel. +354 840 6240) and Valdis Arnardottir PR
and Communication Manager (tel. + 354 840 6217)