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A hard blow for the low-cost Icelandic long-haul airline. Less than a month after the announcement of its acquisition by rival Icelandair, it announced that she finally gave up the operation, without explanation.
"Icelandair's proposed acquisition of WOW Air will not be completed," Icelandair Group interim president Bogi Nils Bogason said Thursday. "This conclusion is certainly disappointing".
The Icelandair share dropped just over 12% on Thursday at the Reykjavik Stock Exchange.
Icelandair announced at the beginning of the month its intention to buy WOW Air in an operation estimated at 2 billion Icelandic kroner (about 15.8 million euros) by local media.
WOW Air in difficulty
If no clear reason is given for this turnaround, WOW Air's health, in great financial difficulty, would be worse than feared, according to AFP.
The low-cost company suffered a taxable loss of nearly $ 60 million in the first half. As early as Monday, Icelandair had acknowledged that it was "unlikely that all the conditions of the share buyback agreement would be met" before the shareholders' meeting scheduled for Friday.
"It was clear from the start that fulfilling all the terms of the buy-out agreement in such a short period of time was an ambitious task," said WOW Air CEO and founder Skúli Mogensen.
The future of the company, founded in 2011 and employing 1,400 people, now seems uncertain. According to Icelandic media reports, Skúli Mogensen told employees that "several actors" have shown interest in the carrier.
(AFP)
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