If the plans of the French company Lur Berri Co-operative Holding come to fruition, Iceland’s defunct Glitnir Bank will be repaid a sizeable outstanding loan, with interest.
The French company plans to take over food processing business Alfesca, which currently counts the Icelander Olafur Olafsson among its biggest shareholders, DV reports.
Olafsson’s company, Kjalar Invest B.V. owns 40 percent of Alfesca. Alfesca is heavily endebted to Glitnir bank.
Despite its debt burden Alfesca is doing well, and has been doing all through the difficult last three years. According to company accounts for 2010, Alfesca had ISK 62 billion more in assets than in debt and made a profit of ISK 5.7 billion, or EUR 35 million in the accounting year July 2009-July 2010.
Lur Berri has a 50 percent stake in the company and now wants the rest as well — hoping to become sole owner. Olafsson told Vidskiptabladid that financing for the deal has been delayed because of current market turbulence.
“This is all being done co-operatively. It suits us to leave the company and settle with Glitnir and Lur Berri wants to expand. In that regard the best interests of both parties are the same,” Olafsson said. He would not say the price Kjalar hopes to get for its stake.