Icelandic investment firm Exista will sell its near 20 per cent stake in Finnish insurer Sampo to reduce liabilities but will keep its other assets, the group said in a statement today.
The firm said it would start an accelerated bookbuild with Citigroup and Morgan Stanley to sell its 114.3 million Sampo shares, which have a value of some €1.6 billion ($2.2 billion) based on Sampo's closing price of €14.40 yesterday.
The move is the latest blow for the struggling Atlantic nation, which agreed yesterday to adopt sweeping powers over banks as its financial system tottered, its currency plunged 30 per cent and a leading agency cut its credit ratings.
"In light of the prolonged deterioration in the global financial markets, it is prudent to scale down exposure and reduce leverage," Exista said in a statement.
"Therefore we have decided to (sell) ... in order to significantly decrease Exista's outstanding liabilities," it said.
Exista's other holdings include a 24.7 per cent stake in Kaupthing and close to 9 per cent in Norway's Storebrand.
Its decision to sell comes four days after an Exista spokesman was quoted in the Finnish media as saying the investment firm was happy with its stake in Sampo.
Reuters