- A global leader in the field of geothermal energy created
Reykjavik, Iceland, 4 October, 2007, 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 businesses. The
merger will create a global leader in the field of geothermal energy with the
total value of ISK65 billion, approximately EUR745 million. The combined
company will operate under the name of Reykjavik Energy Invest and will invest
in and utilize geothermal energy. The deal is subject to closing, including
approval from competition authorities.
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:
o 100% of Iceland Drilling (formerly owned by Geysir Green Energy), a world
leader in drilling and utilization of geothermal energy
o 48% share in HS (Hitaveita Sudurnesja), Iceland's third largest energy
company
o 70% share in Enex, a company working on various geothermal projects all over
the world
o 66% share in Enex China that is developing geothermal district heating
systems in China
o 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:
o Orkuveita Reykjavikur 35,5% (www.or.is)
o FL Group 27% (www.flgroup.is)
o Atorka Group 20% (www.atorka.net)
o Glitnir bank 6,2% (www.glitnirbank.com)
Bjarni Armannsson will be the Chairman of the Board and there will be two Chief
Executives Officers responsible for the business, Gudmundur Thoroddson and
Asgeir Margeirsson. 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.
Bjarni Armannsson, Chairman, Reykjavik Energy Invest, said:
“I believe the company will be a leading power player in developing the
potential in geothermal energy globally. Geothermal energy has a fantastic
potential and we are eager to start working with projects with the global arena
as our market”.
Commenting Hannes Smárason, Chairman of Geysir Green Energy and FL Group, said:
“I fully support the merger of Geysir Green Energy and Reykjavik Energy Invest,
and as the Chairman of Geysir and its main shareholder, I welcome our new
partners on board. Iceland has always been on the forefront of renewable energy
and we will capitalize on the Icelandic expertise in the field. I am delighted
that our two leading companies have joined forces to create a truly formidable
global player”.
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.
For further information:
Reykjavik Energy Invest:
Bjarni Armannsson, Chairman
Tel +354 516 6000
Gudmundur Thoroddsson
Chief Executive Officer
Tel:+354 516 6000
Haflidi Helgason
Mobile: +354 864 6350
E-mail: haflidi.helgason@rei.is
FL Group and Geysir Green Energy
Hannes Smarason, CEO of FL Group and Chairman of GEE
Chairman of Geysir Green Energy
Tel: +354 669 4476
Ásgeir Margeirsson
Chief Executive Officer
Tel: +354 665 2055
E-mail: asgeir.margeirsson@geysirgreenenergy.com