Icelandic Group parent acquired

By

SeafoodSource staff

Published on
August 23, 2010

An Icelandic-based investment fund has acquired the parent company of Icelandic Group.

Framtakssjóður Íslands (FSÍ) on Friday announced that it agreed to purchased Vestia Holdings from the Icelandic bank NBI hf., also known as Landsbankinn, for ISK 19.5 billion (USD 160.9 million, EUR 127.6 million). As part of the transaction, Landsbankinn will also acquire a 30 percent stake in FSÍ.

Vestia called the deal “an important step” toward restructuring and anchoring Icelandic companies and thereby strengthening the country’s economy, which collapsed during the global financial crisis in the fall of 2008.

The acquisition of Vestia comes about six months after it assumed full ownership of Icelandic Group’s parent company, Eignarhaldsfelagiõ IG.

“The transaction benefits Landsbankinn in all respects and is also favorable for the companies in Vestia’s portfolio. These companies are acquiring the solid backing of a long-term investor. Banks are not suitable long-term investors in unrelated activities,” said Landsbankinn CEO Steinthór Pálsson. “In forming such strong ties with FSÍ, Landsbankinn is participating in the restoration of the economy in a different form than hitherto.”

“The partnership with Landsbankinn significantly boosts the financial capacity of FSÍ. Through this agreement, the fund acquires robust companies and a strong shareholder, which will facilitate further development,” added Finnbogi Jónsson, managing director of FSÍ, which is collectively owned by 16 domestic pension funds and operates under the auspices of the Icelandic Pension Funds Association. “In the six months since it started operating, the fund has amassed a strong, diversified asset portfolio. We hope to be able to list more of these companies on the stock exchange in the near future, creating an opportunity for all Icelanders to acquire a direct stake.”

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