Purchase Of Iceland Could Lower Icesave - The Reykjavik Grapevine

Purchase Of Iceland Could Lower Icesave

Published January 10, 2011

The Iceland chain of retail stores in the UK could end up reducing Icesave costs from 50 billion ISK to 20 billion.
Vísir reports that the Iceland stores, which are for the most part in the ownership of Landsbanki, are now considered more valuable than was originally estimated. According to sources close to Vísir, a number of investors have contacted the bank about the Iceland stores, showing a great interest in a purchase.
Should such a purchase take place, the resulting revenue, which would go to Landsbanki, could then be put towards paying down the Icesave debt.
According to the new Icesave agreement between Iceland, the UK and Holland, Landsbanki would be responsible for paying the bulk of what is owed in the Icesave debt, with the government covering whatever could not be paid. If the Iceland stores are worth 92 billion ISK, as has been estimated, then the portion Landsbanki would receive for the purchase of their share in the stores could significantly reduce the cost that the Icesave deal would incur.
Landsbanki officials intend to meet in London today to discuss the sale of the Iceland stores, although no formal decision on the matter has been taken.
Related articles:
New Anti-Icesave Group Founded By Former Icelandic Stock Trader
New Icesave Deal Met With Optimism and Scepticism
Opposition Parties Reject New Icesave Proposal
New Icesave Offer Could Cost Iceland Much Less

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