Landsbanki has made a deal with Malcolm Walker, founder and chief executive of Iceland Foods, to buy 77 percent of the grocery store chain Iceland with a GBP 1.55 billion (ISK 300 billion) offer, Vísir.is reports.
Landsbanki believes that this approach delivers the most certainty around sale completion whilst achieving the objective of maximizing the proceeds from the sale of the shares, the bank said in a statement.
Iceland Foods’ management, led by Walker, owns the remaining 23 percent stake.
“I am delighted that the Icelandic banks have recognized the importance of management to the continuing success of the business, and have been supportive in giving us the exclusive right to pursue negotiations with them,” Walker said in a statement.
Last year, Iceland Food reported annual earnings before interest, taxes, depreciation and amortization of GBP 188 million, on a revenue of GBP 2.5 billion.