Iceland Foods' management plans buyout
Managers of Iceland Foods intend to purchase a 77 per cent stake in the grocer, to give them complete control over the company.
Iceland Foods' management team is involved in business negotiations with two failed banks as it looks to purchase a 77 per cent state in the supermarket chain.
Chief executive Malcolm Walker told Reuters management is in "exclusive talks" with Landsbanki and Glitnir, two failed Icelandic banks that are looking to sell their stake in the unlisted company.
An agreement has been reached with the two financial institutions that gives the management team - which already holds a 23 per cent stake - first refusal on purchasing the rest of the company, which operates over 700 stores across the UK and has been valued at £1.55 billion.
Mr Walker noted he has no intention of collaborating with Bain Capital and BC Partners, two private equity firms that are also bidding for the stake.
He said he is "delighted" that the banks "have recognised the importance of management to the continuing success of the business", adding a successful deal is likely to be reached in the next three weeks.
Posted by Ken Hayes
Source: Reuters, February 16th