COPENHAGEN- Iceland plans to sell 25% of Islandsbanki to raise at least $250 million next year in a domestic listing of the state-owned bank, media outlet Kjarninn reported on Wednesday.
Finance Minister Bjarni Benediktsson, in a memorandum published on Tuesday, valued Islandsbanki at between 130 billion Icelandic crowns ($1 billion) and 140 billion crowns, Kjarninn said.
It was one of the three banks that collapsed within a few days of each other in 2008, prompting a state takeover which resulted in restructuring existing banks or creating new ones.
Following the sale, which will take at least five months to complete, Iceland may list a majority or its entire remaining stake in Islandsbanki, Kjarninn cited the memo as saying.
Islandsbanki, one of Iceland's three largest banks with a domestic market share of around a third, has 744 employees and last year posted profit after tax of 8.45 billion Icelandic crowns ($66.64 million). ($1 = 127.8200 Icelandic Crowns)
(Reporting by Jacob Gronholt-Pedersen and Nikolaj Skydsgaard; Editing by Alexander Smith) ((copenhagen.newsroom@thomsonreuters.com; +45 3274 2001; Reuters Messaging: jacob.pedersen.thomsonreuters.com@reuters.net))
