The sale of Icelandair Hotels

All conditions of the Agreement between Icelandair Group and Berjaya Land Berhad (“Berjaya”), concerning Berjaya’s acquisition of a 75% share in Icelandair Hotels and related real estate (the “Company”), have now been fulfilled by both parties.

The purchase price of the 75% share of the Company amounts to a total cash payment of USD 55,3 million and has been adjusted for the position of net debt and net working capital as of 31 December 2019.

Berjaya shall on 28 February 2020 render to Icelandair Group a payment of USD 20 million in addition to the USD 15 million already paid by Berjaya in December 2019. Thus, on 28 February 2020, a total of USD 35 million (approx. 63%) of the total purchase price will have been transferred to the Seller. The final payment of the purchase price, a total of USD 20,3 million, is due at completion which the parties have agreed will take place on 31 May 2020, three months later than previously announced. The delivery of shares will take place at completion.

Due to the extension of the completion the Buyer will pay the Seller interest of 6% per annum on the remaining balance of the purchase price, a total of USD 0,3 million, on 28 February 2020. According to the extension agreement, a break-fee of USD 20 million becomes effective if the final payment is not made on 31 May 2020 and Icelandair Group may rescind the Agreement without recourse to the Seller or the Company.

Further information:

Investors: Íris Hulda Þórisdóttir,

Media: Ásdís Pétursdóttir,