The Icelandic state may become a shareholder in a few British chain stores such as House of Fraser, Hamleys, Iceland and Karen Millen, currently owned by Baugur Group, if the company’s debts to Icelandic banks will be transformed to stakes in Baugur’s stores.
According to the Financial Times, the Icelandic state is not planning to sell Baugur’s assets to pay the company’s debts since it is impossible to acquire a fair price for these assets during the current economic situation, mbl.is reports.
However, if Icelandic and British authorities are unable to reach an agreement on de-freezing the assets of Iceland’s Landsbanki Bank (which has now been nationalized) in the UK in relation to the Icesave dispute, such an arrangement on Baugur’s assets is unlikely to take place.
CEO of Baugur Group Gunnar Sigurdsson later told mbl.is that there is no chance of the Icelandic state becoming a shareholder in the aforementioned chain stores.
Click here to read more about the Icesave dispute.