Reference is made to Icelandair Group hf., announcement dated 13 July, 2019, whereby it was announced that Berjaya Property Ireland Limited acquired a 75% stake in Icelandair Hotels and related real estate.

According to the put and call option agreement, which was signed together with the share purchase agreement, the earliest exercise date is three years post-delivery of the company and thereafter once a year for a three-year period. The option price shall be determined based on EBITDA (excluding IFRS 16 effects) of the previous year before the exercise date, multiplied by 10, after adjusting for net interest-bearing debt. At this moment Icelandair Group has not decided whether or when the right will be exercised.

As previously announced, the enterprise value of Icelandair Hotels and related real estate is USD 136 million (excluding IFRS 16 effects). Berjaya will acquire a 75% share in the company and the purchase price will depend on the amount of net working capital and net interest-bearing debt at the date of delivery.

The shares owned by Icelandair Group in Lindarvatn ehf., are not included in the share purchase agreement. The purchase price is payable in cash and will be paid in tranches to Icelandair Group. The completion of the transaction and final payment will be at year-end 2019, upon the delivery of the shares. The total EBITDA of the company and related assets for the year 2018 was USD 12 million. The share purchase agreement is subject to various conditions, such as the necessary approvals pertaining to requirements under act no. 21/1966 and refinancing of Icelandair Hotels and related real estate. Berjaya has already conducted a due diligence on the company.

For more information, please contact:


Íris Hulda Þórisdóttir, director of investor relations Icelandair Group-


Ásdís Pétursdóttir, Communications Director -