Icelandic bank Landsbanki is “considering options” for its 14% stake in UK supermarket group Iceland, which fell under the bank’s control when it seized the assets of investment firm Baugur.
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Baugur went into administration last month, after its credit lines dried up following the nationalisation of Iceland’s major banks in October. The company owed around GBP1bn (US$1.45bn) to Icelandic bank Landsbanki.
A spokesperson for Landsbanki told just-food today (26 February) that the group was considering a number of options for Baugur’s former investments. However, the spokesperson added that the bank was not planning a sale of the Iceland stake “at the present time”.
Baugur had a number of investments in the UK high street – including stakes in Hamleys and House of Fraser – but it is believed that a sale of Iceland shares will generate the most interest.
“Iceland is the best part of the empire. Given its sales figures it is likely to attract a lot of interest, not just from private equity but also from trade buyers,” Pali International analyst Nick Bubb told just-food after Baugur’s assets were seized.
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By GlobalDataAccording to the latest TNS Worldpanel grocery market share figures, Iceland increased its sales in the 12 weeks ending 25 January by 14% thanks to a strong Christmas performance.
