Icelandair Group sees shares go to Islandsbanki

It emerged today that two companies with important investments in Icelandair Group have had their shares taken away; meaning Islandsbanki Bank now has a 47 percent stake in Icelandair Group.

Today’s press statement from Islandsbanki put particular emphasis on the fact that Icelandair Group does not bear responsibility for the collapse of two shareholding companies and that business will continue as usual. Islandsbanki claims to be relatively happy with the situation.

“Icelandair Group’s operations have gone better than expected in the first quarter,” Islandsbanki says. “Over recent months, the company has been working on a financial reorganisation in collaboration with Islandsbanki. The project is going well and the Bank wants to continue its co-operation with the current Icelandair management,”

Icelandair Group trades its shares freely on the stock exchange and the company will remain listed on the Nasdaq OMX exchange in Reykjavik. Islandsbanki intends to sell its stake on the open market at a time best suited to all stakeholders.

Despite a temporary agreement from The Financial Supervisory Authority (FME) in Reykjavik allowing Islandsbanki temporary permission to hold its 47 percent stake in Icelandair Group, the Bank must reduce its holdings to 30 percent or less as soon as possible.

The two troubled business which formerly held the shares are Mattur Investment ehf. and Naust ehf. Both used loans from Islandsbanki to buy investments, making it relatively simple for the Bank to seize those investments in the event of the companies’ default.

Icelandair Group is the Icelandic travel company with a wide variety of operations all over the world. Icelandair Group is made up of 12 businesses, including Icelandair, Iceland Travel and Loftleidir Icelandic.

More details on the company can be seen at www.icelandairgroup.com

Contact Information

Gudjon Arngrimsson

Corporate Communications

Icelandair

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