Iceland-based investment company Baugur Group wrapped up the sale of all its assets in Iceland yesterday evening and will from now on focus on investments in retail in Britain, the other Nordic countries and the US.
The name of investment company FL Group has been changed to Stodir. Last night Stodir purchased an almost 40 percent stake in Baugur Group from Styrkur Invest, Fréttabladid reports.
“With these actions the equity basis of Stodir is strengthened considerably and a fourth pillar is provided for the company,” said chairman of the board of Baugur Group Jón Ásgeir Jóhannesson.
“At the same time we have managed to secure refinancing of Baugur’s debt. It is a great relief and an achievement for us considering the current situation on international credit markets,” Jóhannesson added.
“Now we can finally play the offense again instead of constantly being on the defensive,” Jóhannesson concluded.
Stodir has sold its entire 34.8 percent stake in Northern Travel Holding, which is the mother company of Iceland Express, Sterling and other tourism companies. Fons purchased that stake, financing the acquisition with shares in Stodir.
Stodir now holds a ruling stake in Glitnir Bank, TM insurance company and Landic Property in addition to Baugur Group. Stodir’s equity has consequently increased by almost ISK 20 billion (USD 256 million, EUR 163 million).
Gaumur investment company, which Jóhannesson owns with his wife Ingibjörg Pálmadóttir and his parents, Jóhannes Jónsson and Ása K. Ásgeirsdóttir, has purchased Hagar, whose operations include the Bónus and Hagkaup grocery store chains.
After the reshuffling of Baugur Group’s assets, the bulk of its operations will be in London, and a decision on the transfer of its headquarters will be made on July 18, according to CEO of Baugur Group Gunnar Sigurdsson.
Commissioner of the Inland Revenue has permitted Baugur Group to change its operational currency to the pound sterling. Until now, the company’s operational currency has been the ISK.
Around 50,000 people work for companies owned by Baugur Group worldwide.
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