Share capital in FL Group will be increased by 49 percent in the near future, or by 4.5 billion shares. The new shares will be sold at ISK 14.7 (USD 0.24, EUR 0.16) per share, almost one quarter lower than FL Group’s closing share price on Monday, ISK 19.25 (USD 0.31, EUR 0.21).
The move will enable the company to increase its market value by up to ISK 67 billion (USD 1.1 billion, EUR 731 million), Morgunbladid reports.
According to Morgunbladid’s sources, Fons, an investment company owned by Pálmi Haraldsson and Jóhannes Kristjánsson, will purchase up to ten percent of the new shares in FL Group.
Baugur Group will become the largest shareholder by increasing its stake in FL Group from 17.7 percent to almost 38 percent in the first phase of the share capital increase. Next year, it will reduce its holding to 35.9 percent.
The holding had by outgoing CEO of FL Group Hannes Smárason, who was the largest shareholder, will be decreased from 20.5 percent to 13.8 percent.
Baugur will pay for the capital stock in FL Group with assets in the form of real estate companies, which are estimated to be worth ISK 53.8 billion (USD 864 million, EUR 587 million).
The largest real estate company is Landic Property, formerly Stodir, in which FL Group will hold a 39.8 percent stake after the deal.
FL Group will also acquire 32 percent in Fasteignafélag Íslands, almost 50 percent in Thyrping, nearly 23 percent in Eik, as well as shares in international property funds.
CEO Hannes Smárason will be succeeded by FL Group’s assistant CEO Jón Sigurdsson, who is only 29 and will become the youngest CEO of a company registered on the OMX Nordic Stock Exchange in Iceland, Fréttabladid reports.
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