On November 6, 2007, Landic Property hf. was divided in accordance with law on
limited companies wherein after Stoðir fasteignir ehf. took over all real
estate from Landic Property hf. in Iceland, all operation related to the real
estate together with related assets and liabilities. Landic Property hf. was
the sole founder of Stoðir fasteignir ehf. and prior to the division, the sole
owner of the Company. The division was a taxable division, which consisted in
that the assets were transferred between the companies at book value and the
transaction did not incur any taxability for neither Landic Property hf. nor
its shareholders. One of the conditions for such division is that the
shareholders of the company being divided only receive shares in the company
taking over the assets and thus Landic Property's shareholders received shares
in Stoðir fasteignir ehf. Following the division, Landic Property owned over
90% of the shares in Stoðir fasteignir ehf. and had thus the right to redeem
minority interest in accordance with law on private limited companies. Landic
Property hf. exploited its right of redemption and now owns all shares in
Stoðir fasteignir ehf. The objective of Landic Property's division and the
following redemption was transfer of ownership of the Company's real estate to
a subsidiary.
Attached is the Division Schedule. For further information, please contact
Guðrún Ögmundsdóttir, tel. +354 860 77 72
