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The Icelandair Group has signed a share purchase agreement (the "Agreement") with Berjaya Property Ireland Limited ("Berjaya"), a subsidiary of Berjaya Land Berhad, under which Berjaya acquires a majority stake in Icelandair hotels and badociated properties (the "Company"). ).
Berjaya Land Berhad is a Malaysian listed company that operates in a variety of sectors, including hotels and resorts, real estate investments and retail. Berjaya Land Berhad and its affiliates employ about 4,000 people and realize an annual turnover of about 1.6 billion USD. The founder and executive chairman of the Berjaya group is Tan Sri Dato Vincent Tan.
Icelandair hotels operate hotels all over Iceland, with a total of 1,811 rooms. In addition, the company will open a new 145-room hotel on Austurvöllur Square, in Reykjavik's Parliament district, in collaboration with Hilton Hotels in 2020. In 2018, the Icelandair Hotels business's turnover will increase. amounted to $ 97 million and the total number of employees to 699. Hotel EBITDA amounted to $ 7 million and rental income from real estate to $ 5 million. The total property area of the company is 17,738 m² and includes Hilton Canopy Reykjavik, Icelandair Hotel Akureyri, Icelandair Hotel Mývatn and Icelandair Hérað.
According to this agreement, Berjaya will acquire a 75% stake in Icelandair Hotels, provided that the Icelandair Group owns 25% for at least three years. In parallel with the signing of the agreement, Icelandair Group and Berjaya have entered into an option and sale agreement for the remaining 25%.
The corporate value of Icelandair hotels rises to 136 million USD. The completion of the transaction is scheduled for the end of 2019, subject to compliance by both parties.
Islandsbanki and HVS London acted as advisors to the Icelandair group.
Taurus SLF acted as an adviser to Berjaya.
Bogi Nils Bogason, CEO of Icelandair Group:
"The huge growth in the number of visitors to Iceland has meant that tourism has flourished in recent years. The Icelandair Group has been instrumental in this process, including leading the strategic development of authentic and high quality accommodation services across the country through Icelandair Hotels. Although we focus the Icelandair Group on our aviation core business, we are pleased to invite such an experienced international investor who, in our view, confirms the value and quality of the company and the Icelandic tourism outlook for coming years. I would like to take this opportunity to thank the management and employees of Icelandair Hotels for their outstanding work in developing such a robust and unique company that has created significant value for the Icelandic tourism industry. "
Tan Sri Dato Vincent Tan, Executive Chairman of the Berjaya Group:
"The acquisition by Berjaya of a 75% stake in Icelandair Hotels will complement the group's current portfolio of 19 resort and resort hotels in Malaysia, Vietnam, the Philippines, Japan, Sri Lanka, Seychelles and the United Kingdom. This agreement with Iceland represents the addition of several new hotel brands including approximately 1,811 rooms to Berjaya's hotel network and will allow us to present a new and invigorating Nordic experience to our new and existing Asian customers.
I believe this investment represents good long-term value for the hotel division of our group. We look forward to working with our new partner to bring the Icelandair Hotels Group to even higher heights. "
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