BLand completes Icelandair Hotel stake acquisition

PETALING JAYA: Berjaya Land Bhd (BLand) has completed its acquisition of a 75% equity portion in Icelandair Hotels ehf and related real estate across Iceland after it paid the remaining US$10.31 million (RM44.91 million), following a US$10 million discount on the purchase consideration.

According to a filing with Bursa Malaysia, the Icelandair Group granted BLand the discount due to the adverse economic effects from the Covid-19 outbreak.

Initially, the purchase consideration for the stake was US$55.31 million, of which a total of US$35 million had aleady been paid, resulting in a balance of US$20.31 million prior to the discount.

Currently, Icelandair Hotels operates 20 hotels located all around Iceland.

In addition, a new five-star 145-room hotel developed in collaboration with Hilton Hotels is scheduled to be launched in Reykjavik’s Parliament District in 2020.

The total earnings before interests, taxation, depreciation and amortisation of these hotels was about US$12 million for the financial year ended Dec 31, 2018.

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