Icelandair Group could be listed on the Iceland Stock Exchange before the end of this year.
According to an agreement between FL Group and, Glitnir, Glitnir will- after performing due diligence - underwrite and sell 51% of sharesin Icelandair Group.
Following the transaction Icelandair Group willno longer be a part of FL Group’s consolidated accounts. It isexpected that this will be finalised around mid October and thatIcelandair Group will be listed.
Icelandair Group is a holding company with 12 service and tradecompanies in the airline, transportation and tourism industries.
The Group has a staff of 2700, a turnover of 54 billion ISK (06 EST.) andfocuses on 3 main areas: International Scheduled Airline Operations, Global Capacity Solutions and Aircraft Trading, and Tourism Infrastructure. The international airline, Icelandair, forms thebackbone of the Group and it links Europe and the US through its hubin Iceland with scheduled flights to 22 destinations. Last year Icelandair carried 1,5 million passengers.
FL Group has previously announced its intentions to list Icelandair Group, but also maintained that it would be willing to hold on to asignificant stake in the company. With the listing of IcelandairGroup, FL Group’s shares in Icelandair Group will be reduced and thecompany may also do so prior to listing.A public offering of shares in Icelandair Group will take place priorto the company’s listing. In the offering institutional investors andthe general public will be able to subscribe for shares in IcelandairGroup. Further details of the process will be revealed after duediligence is finalised.
Icelandair Group operations will continue on all levels as normal.Its strong management team will continue and the board of directorswill stay the same. All 2700 employees will continue to be part of astrong, growing and leading company.
Hannes Smarason, CEO of FL Group: “This agreement is outstanding forall parties involved and FL Group is realising a substantial profitfrom the sale of Icelandair Group. This transaction and the plansthat are on the table create significant flexibility for furtherinvestments for FL Group. We have emphasised that Icelandair Group,the country’s most important transport company, and a leadinginternational player in the airline industry, would be in publichands.”
Bjarni çrmannsson, CEO of Glitnir, the leading Icelandic/Norwegianfinance group, is equally delighted: “I’m very pleased with thisagreement we have made with FL Group. Listing Icelandair Group is avery exciting task and we are looking forward to it. Icelandair is avery well run company with a strong position on the North Atlanticmarket and is the leading tourism company in Iceland. Tourism playsan increasingly important role in the Icelandic economy andIcelandair will be at the forefront of that development for thecoming years.”
Jon Didrik Jonsson, Managing Director of Investment Banking inGlitnir: “We are entirely convinced that there is great interest inIcelandair Group and its listing. Glitnir already has buyers for alarge part of the share the bank underwrites, with the sameconditions as the bank makes.”
Jon Karl Olafsson, CEO of Icelandair Group: “The management ofIcelandair Group supports the plan of listing the company on theIcelandic Stock Exchange and is looking forward to the opportunitysuch a listing offers. The aim for a listing is to bring a broadgroup of institutional and private investors to the company andstrengthen the special bond the company has with the general public.I am also very pleased that all employees of the company will havethe opportunity to purchase shares as part of the agreement betweenthe Bank and FL Group.”