News and Notifications - Tuesday, March 02, 2010 3:51 PM

Bílaleiga Flugleiða ehf. (Hertz Iceland) sold to new owners

The entire share capital in Bílaleiga Flugleiða ehf. has been sold to a company owned by Sigfús R. Sigfússon, Sigfús Sigfússon, Hendrik Berndsen and Sigurður Berndsen. The new owner will formally take over operations on 1 March 2010 and plans to continue running the company in a similar form as hitherto. Concurrent to the sale, the new owner was approved by Hertz International as the only company in Iceland franchised to operate under the Hertz brand.

Landsbankinn's Corporate Finance division managed the sale of Bílaleiga Flugleiða ehf. with the above results. The sales process opened with an advertisement on 22 January and was open to investors whose equity position exceeded ISK 500 million and received the approval of Hertz International. A total of 13 investor groups participated in the initial stages of the process; 9 parties were subsequently invited to participate further and 4 were invited to make binding offers. The company has undergone financial debt restructuring which involved writing-off of debt. The sales price will not be disclosed.

With a market share of 15% based on vehicles, Hertz Iceland is the third largest car rental in the country. Its vehicles numbered around 1,000 in summer 2009. The company currently has 45 employees; during the summer season, this number increases to around 70.

Hertz International is the world's largest car rental service with operations in 145 countries in 7,700 branches.  The Hertz brand is one of the most recognisable brands in the world.

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