Canadian company Magma Energy yesterday took its 41 percent stake in Iceland’s HS Orka with a pledge to increase business. Geysir Green Energy, which is majority shareholder in HS on the other hand, has said its plans are to ‘trim the sails’, sell assets and pay off debts.
Magma Energy owned 8.5 percent in HS Orka before yesterday, when its purchase of a further third in the company was formally completed. The latest shares come from Reykjavik Energy and the City of Hafnarfjordur – a public-to-private (and non-Icelandic) business transaction which has proved highly controversial.
Wasting no time, the company’s new board held its first meeting yesterday. Magma Energy has two board members and Geysir Green Energy three, RUV reports.
Alexander Gudmundsson especially enjoyed yesterday, as he is now not only the Chairman of the Board at HS Orka, but also took over as CFO of Geysir Green Energy from Asgeir Margeirsson. Margeirsson resigned his post over personal concern for the company’s desire to sell assets in order to pay debts.
Magma Energy strips more assets than Stringfellows. Doesn’t Iceland ever learn. *sigh*
As I said in the beginning, the slow but sure control of Icelandic power by outlandish corporations, Get ready in the near future to pay more for the energy bill.
For goodness sake folks! Enough with the complaints. Start acting on your own behalf. The problems you face should be met with resolve and creativity.
Jim did write :
>Magma Energy strips more assets than Stringfellows.
Nice sound bite but I hope that you do have some facts to back that up that you can post here.
Fisy – Magma Energy was set up last year by Ross Beaty. His specialism and track record is in founding holding companies in order to raise funds and then buy resources companies to strip their assets. He has done this successfully again and again – that’s how Beaty consistently turns a good return for the investors in his holding companies. Check out what he did with the copper companies he acquired; he will do the same with geothermal companies he’s currently acquiring.