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Icelandair Shareholders Yet to Approve WOW air Purchase

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Icelandair Shareholders Yet to Approve WOW air Purchase

WOW air and Icelandair

Photo: Golli.

The Iceland Stock Exchange (ICEX) suspended trading of Icelandair shares yesterday. Túristi.is reported first. According to ICEX, the suspension was made at the request of the Financial Supervisory Authority. Icelandair Group is now in negotiations with shareholders regarding changes to the trading terms of the company’s shares. The purchase agreement is subject to approval at a shareholders’ meeting to be held this week.

The trading suspension is temporary and will last until Friday, November 30, on which date Icelandair Group will hold a shareholders’ meeting. The company reached an agreement to purchase Iceland’s low-cost airline WOW air earlier this month. An announcement from Icelandair Group released on November 26, however, states it is unlikely that the conditions of the purchase agreement will be fulfilled by the November 30 meeting date.

Both Icelandair and WOW had been in the media spotlight for poor performance and financial difficulties over the past several quarters. The meeting agenda is also expected to include discussion of new measure’s to strengthen the company’s finances over the long term.

Icelandair’s subsidiary Loftleiðir Icelandic recently submitted a binding offer for 51% of the shares in Cabo Verde Airlines. On November 5, 2017, the Cape Verdean government signed an agreement with Loftleiðir turning the administration of the airline over to the Icelandic company.

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