Kvika banki hf.: Proposed share buybacks
Kvika banki hf. has announced plans to repurchase a significant portion of its own shares, totalling up to ISK 1,756,756,000. The move comes alongside a new agreement with Arion banki hf. to ensure the buybacks do not disrupt their ongoing merger plans.
The latest request includes authorisation for an additional ISK 631,548,500 in share repurchases, alongside the completion of previously suspended buybacks worth up to ISK 1,125,207,500.
The share repurchase plan follows the EU’s implementation of the CRR III Regulation, which governs banking capital requirements. Kvika’s total buyback programme, if approved, will reach ISK 1,756,756,000.
To safeguard their merger agreement, Kvika and Arion signed an addendum to their existing letter of intent. This ensures the planned share repurchases will not alter the exchange ratios set for their merger.
Arion banki hf. has separately announced its own capital injection of up to ISK 5 billion, scheduled for 2026. The funds will support the combined entity following the merger with Kvika.
Kvika’s share buyback programme now awaits final approval. If authorised, the repurchases will proceed alongside the bank’s merger with Arion.
The agreement between the two banks ensures stability in their exchange ratios, while Arion’s planned capital boost in 2026 aims to strengthen the merged institution’s financial position.
