Kaupthing Could Acquire 40 Percent in Hagar Skip to content

Kaupthing Could Acquire 40 Percent in Hagar

It appears that New Kaupthing will acquire a 40 percent stake in commercial enterprise Hagar and that former Baugur chairman Jón Ásgeir Jóhannesson and other investors will maintain their 60 percent stake in the company by submitting ISK 7 billion (USD 56 million, EUR 35 million).

The headquarters of Kaupthing in Reykjavík. Copyright: Icelandic Photo Agency.

With this move, the current mother company of Hagar, 1998, would become debt-free and foreign claimants would carry most of the ISK tens of billions of damages caused by it, according to Stöd 2.

However, it is expected that tens of billions will be written off, Fréttabladid reports.

Hagar, which operates the stores Hagkaup, Bónus and 10-11 among other businesses, is the sole asset of 1998, a holding company owned by Jóhannesson and his family.

Last year, 1998 borrowed more than EUR 260 million (USD 384 million) from Kaupthing to buy Hagar out of Baugur, which has now gone bankrupt.

Like the bank’s other domestic assets, 1998’s debt to Kaupthing was relocated to New Kaupthing after the banking collapse.

The ownership of Hagar is currently being reorganized and two of New Kaupthing’s representatives have taken a seat on the board of 1998.

Click here to read more about Baugur’s bankruptcy.

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