Iceland attracts six first-round bids in sale process
The process for the sale of Iceland Foods has got off to a good start by attracting six first-round bids from a range of supermarkets and private equity groups
Bidders include Morrisons, Asda, TPG, Bain Capital, BC Partners and Blackstone Group and the bids range between £1.3 billion and £1.5 billion.
Iceland’s founder and chief executive Malcolm Walker, who holds a 23% stake in the company, has not submitted a bid but is likely to bid later in the process. Walker benefits from a clause in a shareholder agreement that only requires him to match the highest bid in order to secure the shares.
The frozen food chain was put up for sale by the resolution committee acting for failed Icelandic banks Landsbanki and Glitnir which own a 77% stake in the business. Last year, Walker made an offer of £1 billion to buy the banks’ stake, which was rejected.
If Asda and Morrisons are successful in their early bids, both supermarkets will be required to sell some Iceland stores to meet the requirements set by the competition regulators.
