News

25.5.2007

Strategic review of Eimskip’s aviation related assets

Hf. Eimskipafélags Íslands Board of Directors has decided to assign Hannes Hilmarsson CEO Air Atlanta Icelandic and ABN Amro Bank to undertake a strategic review of Eimskip’s aviation related assets, including to find potential buyers for 100% of the shares in Air Atlanta hf. Projections for the current financial year estimate that 20% of Hf. Eimskipafélags Íslands turnover will be from Air Atlanta Icelandic. The review is expected to be finalised within the next couple of months.

Additionally Hf. Eimskipafélag Íslands intends to sell 49% share in Avion Aircraft Trading (AAT). Hf. Eimskipafélag Íslands and the owners of 51% share are working jointly on selling the 49% share. The 51% share in AAT is owned by Artic Partners. Artic Partners is owned by Hafþórs Hafsteinssonar, Chairman of AAT, Arngríms Jóhannssonar, Board Member of AAT and other directors of AAT. The sale is expected to be finalised within the next couple of weeks.

Hf. Eimskipafélag Íslands aims to grow further in transportation, shipping and coldstores globally and will focus on further opportunities in that area.

The proceeds from the disposal will be used for further growth and repayment of loans. The effects of the sale, without profit on the sale, on the financial results of the current year is unsubstantial. Estimated effects on the balance sheet of Hf. Eimskipafélag Íslands is approximately 300 million euros or 25 billion ISK.

Baldur Guðnason, CEO of Eimskip, on the strategic change:

“I see many opportunities in building a strong network in cold stores globally. We find the business area profitable and more stable for the company’s shareholders in the long term. Demand for transportation and storage on refrigerated good is constantly increasing worldwide and we aim to be a key player in the future growth.”

Hannes Hilmarsson, CEO of Air Atlanta:

“We consider this situation an opportunity for Air Atlanta Icelandic.  The company has grown to become a leading global player in the ACMI market, and has built up a strong position in the cargo wide body aircraft market following fleet restructuring in 2006. Air Atlanta Icelandic is in excellent situation to expand its fleet, and does therefore present a valuable position in the fast growing long-haul air cargo market.”