Kaupthing Bank ”Kaupthing” has sold its operation in the Faroe Islands to Eik Banki P/F. Eik Banki will take over Kaupthing’s Faroese operation on 31 December 2007. Kaupthing’s operation in the Faroe Islands, which was set up in 2000, has mainly focused on securities trading, asset management, loans and other traditional investment banking activities. The Faroese business, which currently has 30 employees, has performed well in the past few years. Eik Banki will pay for the operation in cash and will take over Kaupthing’s deposits in the Faroe Islands, as well as the majority of the loans the Bank has issued there. The sale of Kaupthing’s Faroese operation will have an insignificant effect on the Group’s operations and its balance sheet. The sale is subject to the approval of standard conditions between the purchaser and seller.
”The Faroe Islands operation has been performing well in recent years and I’m convinced that it will continue to do so under its new owners. With the growing number of Kaupthing offices in mainland Europe we decided to sell our operation in the Faroe Islands. I would like to take this opportunity to thank CEO Peter Holm and his staff in the Faroe Islands for their excellent contribution to Kaupthing and for their fine achievements.”