Icelandair Group and PAR Capital Management have reached a binding agreement wherein the Boston-based privately owned hedge fund and its affiliates will acquire an 11.7% stake in the carrier holding.

According to a stock market disclosure, PAR subscribed to 625,000,000 newly issued Icelandair Group shares valued at ISK9.03 (USD0.07) per share. The overall transaction, which is valued at ISK5.644 million (USD46.56 million), is still subject to existing shareholder agreement.

“PAR Capital Management is a great addition to our strong group of shareholders," Bogi Nils Bogason, President and CEO of Icelandair Group, said. "We believe that a partnership with PAR Capital Management will bring substantial value to Icelandair Group. It is moreover pleasant to have this seasoned international investor share our belief in the prospects of the Company.”

Bogason added that the capital increase will further solidify Icelandair Group’s financial position, as it prepares for growth.