Berjaya acquires Icelandair Hotels and related real estate

handshakeIcelandair Group has signed a share purchase agreement with Berjaya Property Ireland Limited, a subsidiary of Berjaya Land Berhad, whereby Berjaya acquires a majority share in Icelandair Hotels and related real estate.

Berjaya Land Berhad is a listed Malaysian-based corporation that operates in multiple sectors, such as hotels and resorts, property investment and retail.

Berjaya Land Berhad and its affiliate companies have around 4000 employees and annual revenue of around $1.6bn. The founder and executive Chairman of the Berjaya Group is Tan Sri Dato Vincent Tan.

According to the agreement, Berjaya will acquire a 75% equity share in Icelandair Hotels, subject to Icelandair Group holding a 25% equity share for a minimum of three years. Alongside the signing of the agreement, Icelandair Group and Berjaya, have entered into a put and call option agreement regarding the remaining 25% equity share.

The enterprise value of Icelandair Hotels amounts to $136m. The completion of the transaction is set for year-end 2019, subject to fulfilment of conditions by both parties.

Íslandsbanki and HVS London acted as advisers to Icelandair Group.

Taurus SLF acted as advisors to Berjaya.

Bogi Nils Bogason, CEO Icelandair Group said: “The immense growth in visitors to Iceland has seen tourism flourishing in the last few years. Icelandair Group has been instrumental in this process, partly by taking a lead in the strategic development of authentic and high-quality hospitality services across the country through Icelandair Hotels.

“While we shift the focus of Icelandair Group to our core aviation business, we are pleased to bring such an experienced international investor to the table which we believe confirms the value and quality of the Company and the prospects of Icelandic tourism for the years to come. I would like to take this opportunity to thank the management and employees of Icelandair Hotels for an outstanding job in developing such a robust and unique business that has created an important value for the Icelandic tourism industry.”