Friday, April 19, 2024

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    It is an absolute coincidence – that big news arrives from Icelandair at a critical time for Play

    The CEO of Icelandair says that it is positive for the company’s domestic shareholders that a large foreign investor shows faith in the company with a large investment in it. According to him, it is a coincidence that this is announced on the day before the share offering and maiden flight of a new competitor.

    The acquisition of a 16.6% share in Icelandair by the well-established American investment fund Bain Capital was announced last night. The investment amounts to ISK 5.7 billion, worth almost ISK 8.1 billion. The rest is in the hands of domestic parties and there are 15,000 shareholders, the vast majority of Icelanders.

    Good for Icelandic shareholders

    Bogi Nils Bogason, CEO of Icelandair, does not believe that Icelandic shareholders will lose chips from their ashes when a new party joins.

    “I think it is the exact opposite, I think it is very valuable for current shareholders to have such an experienced and powerful investor in the shareholder group. We have about 15,000 shareholders today. 99% of them are definitely Icelanders.

    For them to get an international investor with a lot of experience and knowledge that he is going to share with us and help the company grow and prosper for the future, I think it’s just a huge boost for current shareholders. The company is and will remain Icelandic, and the business model they are buying into is about operating an Icelandic airline from Keflavik Airport. ”

    Shares in the company have already risen by 6.8% in value on the Exchange today, hopefully mainly due to the news of Bain Capital. Bogi also points out that the investment significantly strengthens the company’s liquidity position.

    “Airlines around the world are still facing a great deal of uncertainty and this will also enable us to seize the opportunities that are emerging in our markets. So this is just very positive in every way. ”

    Wish to Play good luck

    This morning, the share offering of Play Air, Icelandair’s newest competitor, began. At the same time, the company flew its maiden flight to London.

    Bogi Nils says that the timing of Icelandair’s announcement of the new investor is a coincidence, the company should simply announce something like this to the Exchange when agreements are available.

    “It’s an absolute coincidence that this is happening the day before Play’s first flight. There was nothing we were wondering about and certainly not Bain. So it was a complete coincidence that this is happening the day before Play’s first flight. ”

    Are you afraid that you will overshadow their glory with this news?

    “We were just completing a transaction and a contract that we have to announce on the Exchange. We just wish Play all the best in their journey and hope that it goes well with them as with us. “

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