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Baugur insists UK interests will are safe

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. “

Readers' comments (1)

  • In The Telegraph too.

    Actually, I can understand the ego appeal of this BUT I believe this could actually be too big to handle.....however, if it goes through at bargain basement price those shopping centre landlords are foooked, well and truly.

    What mystifies me is the fact that trends indicate a rejection of mass market (however it may be dressed up....many do fake niche wannabe trading) so even more chains owned by one company........all feels very Tescopoly....and we all know how uncool that is.
    Sure Tesco take a stack of ££££ couldn't they? They kill off any local competiotion BUT many only buy the absolute minimum from them...preferring local suppliers instead.

    Dressmaking is on the increase, niche labels (IF they can get to the customers) are more popular with the young. walking around town with a stuffed Primark bag is akin to wearing a fur coat in the 80's. It says ' I don't care about the cost to others, I only care about what I can get for Meeee'.

    For many youngsters now, a Top Shop bag indicates 'Running with the Herd'' and young people hate that tag.
    We all like to think we are individuals.
    If PG owns all the Mosaic/ Baugur stuff too?.....An Oligopoly is not cool no matter how it is disguised.

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