Iceland proposes selling up to 35pc stake in Islandsbanki
- The committees suggest selling at least 25% and up to a maximum of 35%.
- The government planned raise at least $250 million by selling 25% of the bank in a domestic listing.
COPENHAGEN: Two Icelandic parliamentary committees have proposed selling up to 35% of the state-owned Islandsbanki in a domestic listing planned for later this year, the finance ministry said.
Islandsbanki, which is wholly owned by the Icelandic state, was one of the three banks that collapsed within a few days of each other in 2008, prompting a state takeover which resulted in restructuring existing banks or creating new ones.
In a statement sent to Iceland's finance minister from the Economic and Business Affairs Committee and the Budget Committee on Jan. 20., the committees suggest selling at least 25% and up to a maximum of 35%, according to a ministry statement on Thursday.
The committees' recommendations, agreed by a majority of members, included setting an upper limit on each bidder's share of between 2.5% to 3% of the total share capital offered.
Plans to list the Icelandic lender were announced last year, and finance minister Bjarni Benediktsson said in December the government planned raise at least $250 million by selling 25% of the bank in a domestic listing.
The finance minister will take the committees' comments into consideration and make a decision on the details of a proposed sale, the ministry said.
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