Shareholders approve Icelandair stock offer next week

10.09.2020 - 11:30
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 Mynd: Haukur Holm - RÚV
Icelandair Group shareholders agreed the company’s proposed stock offering at a meeting yesterday afternoon at Hilton Nordica Hotel in Reykjavík. The stock offering will take place next week.

Icelandair director Bogi Nils Bogason says he was expecting the decision: “Shareholders unanimously agreed the company’s proposals for stock increase and that the company has permission to issue subscription rights. This means we will continue with the project we are engaged in,” Bogi Nils told RÚV after the meeting.

“We were optimistic that shareholders would approve the board’s proposal, and that has been the outcome,” Bogi adds. The stock offering has been in preparation for several weeks and meetings have already been held with several potential investors. “We are therefore going to carry on with the project for an offering which will take place on Wednesday and Thursday of next week.” 

Asked whether he thinks the pension funds will invest, Bogi says: “I don’t know, but I hope so. They are of course an important player in the investment environment in Iceland.” He confirmed that pension funds are among the potential investors Icelandair has already been talking to. 

Alþingi recently approved a bill to give Icelandair state backing for its credit lines up to a value of 15 billion krónur, exclusive to the company’s aviation activities.  

Icelandair has reached agreements with Íslandsbanki and Landsbankinn to underwrite the stock offering. Under the deal, the banks will buy up to six billion krónur of Icelandair stock. 

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Alexander Elliott
Project manager
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