Icelandair Group: Completion of the sale of Icelandair Hotels to Berjaya

Completion of the transaction between Icelandair Group and Berjaya Land Berhad (“Berjaya”), concerning Berjaya’s acquisition of a 75% share in Icelandair Hotels and related real estate (the “Company”), will take place today, not 31 May 2020 as previously announced, and the shares will be delivered to Berjaya following completion. Furthermore, changes will be made to the Board of Directors of the Company, whereas Berjaya will appoint two directors and Icelandair Group will appoint one.

Due to the temporary adverse economic effects of the COVID-19 pandemic on the Company´s operations the final payment has been reduced and now amounts to a total cash payment of USD 10.3 million. The total purchase price for the 75% share of the Company amounts to a total cash payment of USD 45.3 million.

Bogi Nils Bogason, President & CEO Icelandair Group:

„We are pleased to close the sale of Icelandair Hotels at this point in time. It is part of our shift of focus to our core aviation business, which has never been as important as today. We are proud of our leading role in the growth and success of the tourism industry in Iceland over the past decade where the development of our hotel company was an important contribution. I would like to take this opportunity to thank the employees of Icelandair Hotels for a great job in the development of high-quality hotels in Iceland that offer outstanding service and authentic Icelandic experience. Despite the uncertainty we are currently facing, I am convinced that the future prospects of Icelandic tourism remain good. Berjaya’s investment supports that vision and confirms the quality and the value of Icelandair Hotels.“