Iceland’s Largest Commercial Enterprise Sold Skip to content

Iceland’s Largest Commercial Enterprise Sold

Arion Bank sold a 34 percent share in Hagar, Iceland’s largest commercial enterprise which operates the grocery stores Bónus and Hagkaup among other businesses, to a distributed group of pension funds and other investors last week.

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Photo by Páll Stefánsson.

The acquisition, which cost ISK 4.1 billion (USD 35 million, EUR 26 million), also included the right to purchase an additional ten-percent share. It has yet to be approved by the Competition Authority, visir.is reports.

The company leading the acquisition is called Búrvellir and is under the ownership of Hagamelur (a company owned by Hallbjörn Karlsson, Árni Hauksson, Sigurbjörn Thorkelsson and the insurance company TM), Gildi pension fund, SÍA I and the professional investment fund Stefnir ÍS-5.

“We see Búvellir’s investment in Hagar as a long-term project and emphasize that the company concentrate on its core operations. We want the company’s ownership to be diverse, both through the pension funds and with direct participation of individual shareholders,” said Karlsson.

Hagar’s registration on the stock exchange is planned later this year.

“We envision that Hagar’s registration can become an important milestone in restoring the Icelandic stock market. The bank has been satisfied with Hagar’s operation in the past months, in spite of difficult circumstances, and the company’s financial base is solid,” commented Höskuldur H. Ólafsson, director of Arion Bank.

Click here to read more about Hagar.

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