The Eik Fund

Originally, the name of the Fund was Sparikassagrunnurin. With the new brand name of Eik Banki, as of 18 December 2006, the name was altered to Eik Grunnurin (The Eik Fund).

The Eik Fund was established in connection with the conversion of the self-owned institution Føroya Sparikassi (now Eik Banki) into a limited liability company, as the activity of Føroya Sparikassi was transferred to the Llc and in return the Eik Fund was granted shares in the company and became the sole shareholder of the Bank. The conversion scheme is stipulated in the Danish Financial Business Act.

Since then, the Fund has reduced its holdings in Eik Banki bit by bit, and today owns slightly above 50 percent of the shares.

Despite being the majority stakeholder, the Eik Fund does not control Eik Banki, due to a legal provision in the banking legislation stipulating that more than 50 per cent of the Board of the Fund must be chosen from the Board of Eik Banki and nominated by the Board of Eik Banki. The Board of Directors of Eik Banki is elected by the Board of Representatives, which in turn is elected by the shareholders.

The Eik Fund has benefitted well from Eik Banki. Especially due to Eik Banki´s significant growth, by year end 2007, the Fund had an equity of DKK 1.9 billion. This being when Eik Banki´s shares are booked at intrinsic value. However, were these shares booked at market value, the equity would be DKK 3.0 billion by year end 2007.

The Eik Fund has been an auspicious and supportive partner that continues to grant Eik Banki possibilities, which the bank would not have had otherwise, just like the Fund has a role as a safety-net for Eik Banki.

Furthermore, the Faroese community has benefitted from the Eik Fund. Besides contributing financial support to various means through “Gávugrunnurin” (the Eik Charity Foundation) and “Vísindagrunninum” (the Eik Science Foundation), the Fund was actively involved with the establisment of the venture company Notio, the seed company Set, and the IT-firm Formula International, the owner of the Danish IT-company Norriq. At the beginning of 2007, the shares in Notio were sold with a considerable profit. However, at year-end 2007, the Eik Fund has re-bought the shares and increased its ownership in Notio to 49.8 percent.

According to its Articles of Association, the purpose of the Eik fund is to:

• Continue the independent institution Føroya Sparikassi´s activities in Eik Banki P/F so that it remains a competitive and consolidated bank
• Perform other financial activities through investments in shares, other interests and convertible bonds in commercial businesses of any kind whatsoever

Use the link below to see the Board of Directors and Articles of Association.

» Board of Directors

» Articles of Association for the Eik Fund (Eik Grunnurin)