Icelandic group sells easyJet shares

FL Group has sold its 16.9 percent stake in easyJet, putting to rest speculation that the Icelandic firm planned to take over the low-cost airline. By selling the stake FL Group has realised a profit of approximately 140 million euros. Proceeds from the sale will be channelled into new investments during 2006.

Following the sale of the easyJet stake and FL Group’s recent bond issue the firm has liquid assets of approximately 600 million euros providing considerable investment capacity for FL.

“FL Group first invested in easyJet just under two years ago and the investment has proved to be a great success which has provided a foundation on which we have built FL Group,” says Hannes Smarason, CEO of FL Group.

“We have enjoyed being an investor in easyJet and believe that the company is well placed within its industry and has a bright future.”

Smarason also said: “The sale of our easyJet holding does not affect our other investments in the aviation sector and we remain committed to our investments in Icelandair, Sterling and Finnair.”