Icelandair Hotels is finalising the sale of 80% of its shares to a subsidiary of the investment company owned by Vincent Tan, international investor and one of Malaysia’s wealthiest people.
A subsidiary of the Malaysian investment company Berjaya Corporation is in the process of concluding a purchase agreement for an 80% stake in Icelandair Hotels, Morgunblaðið reports.
Malaysian billionaire Vincent Tan, one of the richest people in Malaysia, is the founder of Berjaya Corporation, one of the largest companies in the country.
He is also the owner of the British football club Cardiff City, which he purchased in 2010, and other sports teams, such as FK Sarajevo in Bosnia and Herzegovina, Los Angeles FC in California and Koninklijke Voetbalclub Kortrijk in Belgium.
His company also invests in lottery and gambling activities, other real estate projects, telecommunications services, food and beverage producers, distribution companies, car dealers and various other ventures.
Icelandair Group announced in May last year that the company had decided to sell Icelandair Hotels and real estate belonging to hotel operations.
The company operates 23 hotels all over Iceland, ten of them summer hotels under the Hotel Edda brand, in addition to a new hotel that is being built by Austurvöllur Square in Reykjavík.
It has a total of 1,937 rooms available all over the country, with 876 in Reykjavík and 450 in the countryside open year round, as well as 611 Hotel Edda rooms available in the summer.
Icelandair Hotels returned an after-tax profit of roughly ISK 293 million (€2.1 million) last year, ISK 15 million less than the previous year. Income from the operation was ISK 14.3 billion last year, up from ISK 1.4 billion the year before.
According to the annual report of Icelandair Group, the subsidiary’s assets, including real estate connected to its operation, amount to ISK 15.3 billion, while its liabilities total ISK 6.4 billion.