Icelandair Group recently signed a deal with the Pension Fund of Commerce (PCF), obtaining a ISK 1 billion investment in return for a 12 percent share in the Company. PCF will subscribe to new shares in the nominal amount of ISK 400 million at a price of 2.5, for a total of ISK 1 billion.
From the new agreement, Icelandair has acquired a total of ISK 4 billion in cash through the sale of new shares in two days. Also, the Group’s largest creditors have undertaken to convert debts in the amount of ISK 3.6 billion into shares based on a share price of ISK 5, which corresponds to a subscription to 720 million new shares.
Bjorgolfur Johannsson, CEO of Icelandair Group explained, “I am extremely pleased with PCF’s investment in Icelandair Group. In two days we have managed to broaden the Company’s investor base significantly, as the vast majority of Icelandic wage-earners have a stake in PFC and FSI through their pension savings. PCF’s investment will increase the Company’s strength still further and enhance its ability to boost still further the position of the Icelandic tourist industry, one of the country’s most important economic sectors.”
The binding agreement follows in the wake of an agreement with FSI announced recently on the acquisition by FSI of ISK 3 billion in shares in Icelandair Group. Both transactions will take place at the same price. The agreement with PCF was concluded with the normal reservations regarding the results of due diligence.
The financial restructuring of the Company will reduce its debt by over ISK 10 billion through the transfer and sale of certain assets which formerly formed a part of the company’s core business, as announced in a notice to the Stock Exchange last 25 March.
“PCF sees tremendous possibilities for Icelandair Group. We have faith in the Company’s management and the business model built by the Company. Icelandic tourism will continue to grow, and through our investment we will support the further growth of the Company. The opportunities are there, and with its investment PCF is taking a decisive step forward and seizing an excellent opportunity that opened up in the market,” Gudmundur Thorhallsson, Pension Fund of Commerce CEO added.
Additional information can be found at www.icelandairgroup.com
Bjorgolfur Johannsson CEO
Gudmundur T. Thorhallsson CEO
Pension Fund of Commerce