(IFN) FL Group sells all its shares in Icelandair Group

Reykjavik (IFN) Iceland's FL Group has secured the sale of its entire shareholding in Icelandair Group, the estimated profit from the sale will be around ISK26 billion (EUR305 million) based on the book value of Icelandair Group at the end of June 2006, FL Group announced on Monday.

Three groups of investors have acquired 50.5% of the shares in Icelandair Group. The groups are: Langflug ehf. (mostly owned by Samvinnutryggingar hf.) with a 32% share, Naust ehf. (mostly owned by BNT hf.) with 11.1% share and Blue-Sky Transport Holding (mostly owned by Ómar Benediktsson) with 7.4% share.

Estimated proceeds from the sale amount to around ISK35 billion (EUR410 million)

Glitnir banki hf. will underwrite the remaining shares in Icelandair Group owned by FL Group. Glitnir banki hf. has already allocated 16% of that shareholding to other investors, employees and key management of Icelandair Group.

Key management of Icelandair Group intends to acquire up to 4% of the company shares.

All Icelandair Group employees will have the opportunity to buy shares in the company and 4% of total shareholding has been reserved for this purpose.

Up to a third of Icelandair Group shares, will be offered to investors and the general public in a public offering (IPO), managed by Glitnir banki hf.

A public offering of shares in Icelandair Group will take place prior to the company's listing. In the offering institutional investors and the general public will be able to subscribe for shares in Icelandair Group. A total of up to a third of Icelandair Group shareholding will be offered. Further details of the process will be revealed at a later stage, FL Group said.

?The great interest of the investor community in Icelandair, made FL Group able to sell all its shares. This is in accordance with Icelandair Groups strong position and solid operations. FL Group is realising a substantial profit from the sale of Icelandair Group and this transaction creates significant flexibility for further investments for FL Group," FL Group's chief executive Hannes Smarason said.

?We have emphasized the importance that Icelandair Group, the country's most important aviation and tourism company, and a leading international player in the airline industry, will come into public hands," he added.

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