Reference is made to announcements from Kvika banki hf. (“Kvika” or “the Bank”) dated 27 and 28 May, stating that Arion banki hf. and Íslandsbanki hf. had each expressed interest in initiating merger discussions with Kvika.

Following due consideration, the Board of Kvika has concluded that the proposals received from Arion banki hf. and Íslandsbanki hf. on 27 and 28 May do not reflect the intrinsic value of Kvika. The Board therefore does not believe that entering into merger discussion based on these proposals is in the best interest of the bank.

Nonetheless, the Board of Kvika is of the opinion that significant opportunities and value could be realised through a potential combination of businesses, to the benefit of both shareholders and customers. Should the interested parties be willing to improve their proposals, the Board is open to revaluate its decision. Arion banki hf. and Íslandsbanki hf. have been notified accordingly.

Please note that this notice is a disclosure of inside information per article 7 of regulation (EU) No 596/2014 on market abuse (“MAR”), which is implemented into Icelandic law with the act on measures against market abuse No 60/2021.