Iceland Foods auction to start this week
The process for the auction of Iceland Foods is expected to start this week. Around 20 potential bidders are thought to have been sent information on the sale including Morrisons, Tesco, Asda and Sainsbury’s.
The Resolution Committee acting for failed Icelandic bank Landsbanki has appointed Bank of America Merrill Lynch and UBS AG to sell its 67% stake in the frozen food chain.
However a report in the Sunday Times at the weekend suggested that the sales process could be slowed down. This is due to the banking advisers having difficulties arranging ready-made financing packages for potential bidders as a result of the ongoing turmoil in the financial markets.
Iceland’s management team and chief executive Malcom Walker, who together currently own the remaining 23% of the chain, are also thought to be interested in placing a bid for Landsbanki’s share of the chain.
Last year Iceland was valued at £1 billion with valuations now varying between £750 million and £2 billion.
