Press Release
Eimskip has reached an agreement for the sale of the majority of its shares in the airline Air Atlanta. The total value of shares in the company is approximately EUR 44 million, or approximately ISK 3.9 billion. Concurrently, Air Atlanta has been divided into two companies: an aircraft operating company under the name of Air Atlanta and an aircraft leasing company under the name of Northern Lights Leasing (NLL), which has acquired the Air Atlanta fleet of aircraft, consisting of 13 widebody jet aircraft. Eimskip has sold its entire shareholding in Air Atlanta and has, moreover, sold 51% of its shareholding in the holding company NLL.
A company owned by the management of Air Atlanta, under the leadership of Hannes Hilmarsson, CEO, and Geir Valur Ágústsson, VP of Finance, has purchased all the shares in the management company Air Atlanta.
The company Artic Partners has purchased a 51% shareholding in the company Northern Lights Leasing. Arctic Partners also owns Avion Aircraft Trading. Arctic Partners is owned by Hafthór Hafsteinsson and Icelandic and overseas investors.
On 25 May 2007, the Board of Directors of HF Eimskipafélags Íslands announced its intention to sell Air Atlanta. The Board planned to complete the sales process before the end of the current operating year. These plans have now been successfully brought to fruition. After the sale, Eimskip has fully withdrawn from aircraft operation. The management plans to focus on the core activities of the company, namely freight transportation and the operation of refrigerator and freezer storage. Eimskip has grown extremely rapidly and has increased its scope of activities by a factor of ten over the past three years. The company currently has a 13% market share on a global level in this field.
As a result of the sale, the company’s debts will decrease by EUR 210 million. Correspondingly, the company’s equity ratio will increase from 29% to 32%. All figures are based on Eimskip’s balance sheet from 31 July 2007, the most recent interim report issued by the company. The interim statement shows that the total assets of Eimskip amount to EUR 1,954 million, as compared to EUR 1,735 million in the previous interim statement. The sale of Air Atlanta will have an insignificant effect on the operation of Eimskip.
Baldur Gudnason, President and CEO of Eimskip:
Eimskip’s policy has been to dispose of its aviation related assets. We presented this strategy at the company’s presentation for shareholders and market participants on 20 June this summer, and now we see the completion of this work. This is quite a substantial milestone. We have managed to considerably reduce the debts of the company and, as a result, will be able to concentrate even further on the core activities of the company.
This transaction means that the company Air Atlanta is divided into two companies, one responsible for the fleet of aircraft and the other responsible for the operation of the aircraft. Eimskip will continue to have a 49% shareholding in the company owning the aircraft, although we plan to withdraw from that company in the future.
Hafthór Hafsteinsson, principal owner of Arctic Partners:
“The aircraft trading and leasing market is at a historical peak, and as a result there are plenty of opportunities to profitably lease and sell the aircraft that will not be used in Atlanta projects following the down-sizing of the company. Arctic Partners is a strong backer, with a 51% shareholding in Northern Lights Leasing, as opposed to Eimskip’s 49% shareholding. The company has acquired considerable experience and gained an excellent reputation on the aircraft trading market through its ownership of Avion Aircraft Trading, a company that has purchased and sold 35 widebody jet aircraft at reasonable profit over the past two years. These two companies, Northern Lights Leasing and Avion Aircraft Trading, will co-operate closely and become very strong companies on the aircraft trading market”.
Hannes Hilmarsson, CEO of Air Atlanta:
“Air Atlanta is a well-known international airline that has gone through substantial and expensive restructuring over the past few years. A considerable challenge awaits us in turning the operation around. It is our ambition to develop a robust and profitable airline on the well-established foundations on which the company is based”.
Further information: Baldur Gudnason, President and CEO of Eimskip, phone no. 525 7202
Hafthór Hafsteinsson, principal owner of Arctic Partners, phone no. 895 7707
Hannes Hilmarsson, CEO of Air Atlanta, phone no. 895 3364
About Air Atlanta
Air Atlanta is the largest ACMI Airline that leases both cargo and passenger aircraft in the world. The company operates a total of 20 aircraft that are leased for longer or shorter periods to other airlines.
About Eimskip
Eimskip offers its customers comprehensive transportation solutions by sea, air and land, with particular emphasis on temperature-controlled transportation and storage. Eimskip operates in approximately 280 locations in over 30 countries. The company operates 50 vessels, 25 aircraft, 2,000 trucks and trailers and approximately 180 cold stores. Employees number approximately 14,500.