Berjaya Land fulfils all conditions in Icelandair Hotels stake buy deal

KUALA LUMPUR (Feb 26): All conditions of the agreement between Berjaya Land Bhd and Icelandair Group concerning Berjaya Land's proposed acquisition of a 75% stake in Icelandair Hotels and related real estate across Iceland for US$55.3 million (about RM234 million) have been fulfilled by both parties.

In a statement on Tuesday (Feb 25), Icelandair Group said the purchase price for the 75% stake in Icelandair Hotels has been adjusted for the position of net debt and net working capital as of Dec 31, 2019.

"Berjaya (Land) shall on Feb 28, 2020 render to Icelandair Group a payment of US$20 million in addition to the US$15 million already paid by Berjaya (Land) in December 2019. Thus, on Feb 28, 2020, a total of US$35 million (approximately 63%) of the total purchase price will have been transferred to the seller," Icelandair Group said.

"The final payment of the purchase price, a total of US$20.3 million, is due at completion which the parties have agreed will take place on May 31, 2020, three months later than previously announced. The delivery of shares will take place at completion.

"Due to the extension of the completion, the buyer will pay the seller interest of 6% per annum on the remaining balance of the purchase price, a total of US$0.3 million, on Feb 28, 2020. According to the extension agreement, a break-fee of US$20 million becomes effective if the final payment is not made on May 31, 2020 and Icelandair Group may rescind the agreement without recourse to the seller or the company (Icelandair Hotels)," Icelandair Group said.

At the time of writing, Berjaya Land has not updated Bursa Malaysia on the status of its Icelandair Hotels stake buy.

At 11:51am, Berjaya Land shares were unchanged at 17 sen for a market capitalisation of RM848.2 million. The counter saw 1.93 million shares traded.