PLAY (Iceland) has raised €16.85m/ISK2.4bn through convertible bonds priced at 17.5pc following the withdrawal of a takeover bid by executives.
The executives, Einar Örn Ólafsson and Elías Skúli Skúlason, decided to abandon their offer due to shareholder opposition to the delisting from Nasdaq Iceland.
The airline secured the convertible bonds to support its new business model, which will end hub operations in Reykjavik Keflavik and shift focus to leisure services.
Bondholders will have the option to convert bonds into shares at an exchange rate of ISK1 and will also acquire purchase rights to a 30pc stake in PLAY Europe.
The financing will help facilitate PLAY’s plans to surrender its Icelandic air operator’s certificate and concentrate on its Maltese air operator’s certificate.
A written statement shared: “The plans and future vision of the takeover group have been well received by the company’s shareholders. Many are in favour of PLAY remaining listed on the Main Market of Nasdaq Iceland. In light of this, the takeover group has decided to withdraw its plans to make a voluntary takeover offer for the company’s shares. The new financing will support PLAY’s new business model, which foresees the end of all hub operations via Reykjavik Keflavik later this year.”
