National Power Company to the Government

The City of Reykjavik and Akureyri have sold their 50% share in the National Power Company (Landsvirkjun) to the Icelandic Government. The sale will be announced later today. Árni Mathiesen Minister of Finance and Jón Sigurðsson Minister of Industry and Commerce confirmed the news to Fréttablaðið.

The total value of the National Power Company is estimated 61 billion and the price of the sale is 30 billion. The town of Akureyri owns 5% share in the National Power Company, the City of Reykjavik owns 45%, and the Icelandic Government the remaining 50%. After the sale the Icelandic Government will own 100% share.

The City Councils of Reykjavik and Akureyri still have to approve of the sale but the deal has been made between the Government and local authorities granted that the councils will approve. The sale has been planned for some time and representatives from the Government and local authorities have held regular meetings throughout the year on how to reach this sale. After agreement was reached on the total value of National Power Company of 61 billion, the sale went through.