All conditions for the deal between Icelandair Group and Berjaya Land Berhad (BLB), concerning the Malaysian company's acquisition of a 75% stake in Icelandair Hotels, have now been fulfilled by both parties, according to a press release from the group which also owns Icelandair (FI, Reykjavik Keflavik).

The purchase price of the 75% share of Icelandair Hotels is USD55.3 million, with BLB paying USD20 million on February 28 in addition to the USD15 million already paid by Berjaya in December 2019. The final payment of USD20.3 million is due at completion and is scheduled for May 31, 2020, three months later than previously announced. The delivery of shares will take place at completion.

Due to the extension of the completion date, BLB will pay Icelandair Group interest of 6% per annum on the remaining balance of the purchase price, a total of USD0.3 million at the end of February. According to the extension agreement, a break-fee of USD20 million becomes effective if the final payment is not made at the end of May.

Icelandair Hotels currently operates a total of 1,811 rooms across Iceland, with a new 145-room property in the capital in collaboration with Hilton Hotels due to open in early 2021. The Icelandair Group subsidiary's revenues amounted to USD97 million in 2018.