Q Iceland Finance, daughter company of Q Iceland Holding, which is a holding company of His Highness Sheikh Mohammed Bin Khalifa Al-Thani, from Qatar, has bought a 5.01 percent share in Kaupthing Bank hf.
In all, Q Iceland Finance bought 37.1 million shares at ISK 690 (USD 7.49, EUR 5.09) each and is now the bank’s third largest shareholder, ruv.is reports.
Sheikh Mohammed is in the royal family that has ruled Qatar since the 19th century. In a statement to the stock exchange it was stated that the Sheikh has had his eye on Kaupthing for some time and considers it a good investment.
Sheikh Mohammed said he plans for his investment in Kaupthing to be a long term one as he has confidence in the standing of the company.
All three of Iceland’s major banks, Glitnir, Kaupthing and Landsbanki, have repeatedly maintained that they work sensibly and have strong financial bases. All three were largely protected from bad American mortgage debt and the recent Lehman Brothers collapse – but all three have suffered greatly in the credit crunch nonetheless.
The Qatari investment is primarily good news for Kaupthing, but Glitnir and Landsbanki will also celebrate the confidence boost Sheikh Mohammed has given the entire Icelandic banking sector.
