Baugur, which has interests in major high street retailers including House of Fraser and Mosaic, has said that its UK portfolio will not be affected by the Icelandic banking crisis.
Baugur Group chief executive Gunnar Sigurdsson said: “In response to developments in the Icelandic banking sector, we would like to make clear that this will have no impact on Baugur’s operations or its portfolio companies.
“In the individual cases where Icelandic banks may have to sell shareholdings in our portfolio companies, we would like to emphasise that these are all minority shareholdings.
“For each portfolio company, if a shareholder wishes to sell their holding, standard pre-emption clauses apply providing the other shareholders with the right to acquire that stake in proportion to their shareholding.
“Should an Icelandic bank sell all or part of their minority shareholding, there would be no impact on the successful day-to-day operations and performance of these companies, but would only change the ownership structure.”
“The financing of the companies in which we hold investments in the UK is unaffected. Our portfolio companies have committed loan facilities with Icelandic and other international banks, which commitments may not be revoked or altered by those banks unless done so in accordance with the agreed terms of those loan facilities.
“Also the businesses are performing well and the portfolio is generating strong cash flows, which is key in markets like this. Our operational assets are strong.
“We have forward contracts and contracts for differences in place which have been marked to market as appropriate. As a result we do not expect there to be any immediate change in our listed equity investments. “