Landsvirkjun

Geysir Green Energy buys Landsvirkjun’s stake in Enex

12. October 2007

Enex is a leader in developing geothermal heat projects and is currently working on the construction of geothermal power installations in Europe, the USA, Central America and China.

The sale brings GGE’s holding in Enex up to 70%, and after the proposed merger of Reykjavík Energy Invest (REI) and GGE, the combined company will control over 97% of Enex’s shares. Steps are now being taken to integrate Enex operations into the combined GGE-REI organisation.

The purchase price of Lansvirkjun’s share was ISK 996m, half of which was paid in cash and half in GGE shares. When the proposed merger of GEE and REI takes place, Landsvirkjun will acquire a holding in REI at a rate of 2.77, which is equivalent to half of the purchase price. Landsvirkjun then has the right to sell its shares in REI after six months at the same rate. As previously announced, the merger is subject to certain conditions, including the approval of the competition authority. If the merger does not meet these conditions, vendors will be paid the entire sale price in cash.

GGE has also bought VST Consulting Engineers’ 2% holding.

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