Investor Bain Capital backs Icelandair with plan to take 16.6% stake

Investment firm Bain Capital is to take a 16.6% share in Icelandair Group, through the IcKr8.1b ($66m) acquisition of new shares in the company. Bain Capital has entered a binding agreement to subscribe to 5.66b new shares. Its acquisition is conditional upon shareholders agreeing to the transaction and waiving their pre-emptive rights to the new shares. Icelandair Group shareholders will meet on 23 July to vote on the investment proposal. “We are pleased to have a leading global investor with deep industry knowledge recognise our efforts and commitment to secure Icelandair’s bright future,” says chief executive Bogi Nils Bogason. Bain Capital would also place a representative on the board of directors. One of the board members, Ulfar Steindorsson, will step down if the transaction is approved.<br/>