In an announcement from Icelandair Group hf. dated 25 March 2010, it was stated
that the Company and its largest lenders, Íslandsbanki and Glitnir Bank hf.,
had reached an agreement on the final arrangements of the financial
restructuring of Icelandair Group. Among other things, the restructuring will
call for the involvement of other lenders in addition to leasing companies
owning aircraft used by Icelandair Group subsidiaries in their operations.
Approval from a shareholders' meeting of the Group is required for certain
aspects of the reorganisation, in addition to the final approval of lenders.
In relation to a closed share offering, Icelandair Group retained DVB Bank to
prepare a valuation of the Company. DVB Bank has been a consultant both to the
Icelandic banks and Icelandair Group in the restructuring process and has been
involved in the process since mid 2009.
The valuation from DVB Bank is based on five year financial projections
prepared by the management of Icelandair Group. Loftleidir was valued
separately from other aspects of the business. Loftleidir was valued only on a
DCF analysis basis, while other aspects of the business was valued based on a
DCF and a peer analysis. This valuation does not and is not intended to
represent the value of shares in the Company which is currently traded on the
Icelandic Stock Exchange, and should not be relied upon by investors. The
underlying assumptions for this valuation are based on the financials of the
Company after financial restructuring, which significantly differs from the
status of the Company which is currently being traded.
The valuation range is based on the average of these valuation methods and
values the equity of Icelandair Group hf. on the range from ISK 16.4 Bn to ISK
25.6 Bn
A summary of the valuation is attached.
For further information, please contact:
Björgólfur Jóhannsson, CEO, tel.+354- 896-1455
Bogi Nils Bogason, CFO, tel.+354-665-8801
