– Entire proceeds of sale will accrue to pension funds and other owners of the Fund
The Iceland Enterprise Investment Fund has sold 10% share in Icelandair Group, a total of 500 million shares.The average price per share was ISK 5.423, placing the total selling price of the shares at ISK 2,711 million. Following the sale, the Iceland Enterprise Investment Fund will retain approximately 950 million shares, which is approximately 19% of the shares in Icelandair Group.
The Iceland Enterprise Investment Fund negotiated the acquisition of approximately 30% share in Icelandair Group in mid-year 2010. The Fund bought a total of about 1450 million shares in two offers for sale for a total of ISK 3.6 billion. The proceeds from the sale now will accrue directly to the pension funds and other owners of the Fund in accordance with the Fund’s terms.
Finnbogi Jónsson, CEO of the Enterprise Investment Fund: “The Fund’s investment in Icelandair Group has proven very advantageous. The Company is very important for the tourism industry in Iceland and for the Icelandic economy. We had great confidence in Icelandair Group’s business model and the management team in charge of the company. All the plans that formed the basis of our decision to invest in the company have stood up to our expectations, and in fact exceeded them. Icelandair Group will continue to be a leading company in Icelandic air transport and tourist services, and we have great faith in the company’s future potential. There are exciting projects ahead for the company, and the Iceland Enterprise Investment Fund will continue to participate in the development of the company.”
Íslandsbanki’s Securities Brokerage division managed the sale of the shares which were sold to professional investors through a process of book building.