According to Icelandic aviation commentators, the great Icelandair sell-off has taken its first major stey as investment firm Bain Capital agreed to take a 16.6% stake in the airline for $66 million.
The transaction was agreed on during the week and still has to have approval from the shareholders, but that is expected to be a foregone conclusion. Icelandair will call a Shareholders’ Meeting on 23 July 2021. รlfar Steindรณrsson will step down as a board member from the date of the shareholders’ meeting subject to the approval of the transaction.
The official line is that the investment will further strengthen Icelandair financial position 'increasing its capabilities of seizing opportunities' during what has been one of the most turbulent times in the aviation industry. The once-mighty Icelandair Group has been flogging off all its other assets at some pretty low prices in recent months and years with the idea of focusing all attention on the core airline. However, in recent weeks insiders have indicated that the new plan is to refinance the airline with a number of investment firms and outside interests to eventually take the troubled company over. They had hoped to get most deals done prior to Play starting operation and the mass of competition from U.S. carriers, however, things are taking longer than expected, according to local analysts, mainly due to the rather complex financial structure.
Bogi Nils Bogason, President and CEO of Icelandair Group. “It is with great enthusiasm that we welcome the anticipated addition of Bain Capital to our strong and diverse group of shareholders. We are pleased to have a leading global investor with deep industry knowledge recognize our efforts and commitment to secure Icelandair’s bright future."
Matthew Evans, Managing Director, Bain Capital Credit said: “We are excited to add Icelandair Group to our diverse portfolio of aviation assets and to support Iceland’s flag carrier in the next chapter of its 84-year history. We are confident our experience across the aviation ecosystem and value-added approach will help grow the Company for the benefit of all stakeholders."
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