FL GROUP
Encyclopedia
Stodir is an international investment company, headquartered in Reykjavík
, Iceland
with offices in London
.
The company was founded on July 20, 1973, under the name Flugleiðir. It was formed as a holding company for Loftleiðir
and Flugfélag Íslands.
Stodir was best known for its subsidiary Icelandair Group
, which was sold in October 2006. Icelandair
, Loftleidir Icelandic and other companies of Icelandair Group have been leaders in the Icelandic flight and tourism industry for about 70 years.
The company was placed into administration
in September 2008 after Glitnir
, its largest investment, was part-nationalised
by the Icelandic government.
acquired 20% of the company. Baugur Group
again was reportedly controlled by a number of companies in a single mailbox in British Virgin Islands.
low-cost airline Sterling Airways
. In addition, FL GROUP holds a 16.18% stake in British
"no-frills" carrier easyJet
. On January 6, 2006, Hannes Smárason
, CEO, stated that a merger of easyJet
and Sterling
was a possibility.
.
In February 2006 FL GROUP announced plans to list its subsidiary Icelandair Group in Iceland Stock Exchange
.
FL sold its 16,9% stake in British
no-frills airline
easyJet
in April 2006 for €325m, returning a profit of €140m on its investment. FL had first invested in easyJet in October 2004, taking an 8,4% share, increasing this over the course of 2005.
In October 2006 FL GROUP secured the sale of Icelandair Group
.
and investment group Aktiv Kapital
were both divested
in March, and the following month a 39% stake in FL was acquired by Styrkur Invest, a company controlled by FL's Chairman Jón Ásgeir Jóhannesson. The company then delisted from the Iceland Stock Exchange
on 6 June after a share buyback
. Jón Ásgeir stepped down as Chairman later that month after a conviction for breaking accounting laws. His wife Ingibjorg Stefania Palmadottir was elected as his replacement. On July 4, FL Group announced both that it had changed its name to Stodir and acquired a 39% stake in retail holding company
Baugur Group
.
process at the District Court of Reykjavík, effectively putting the company into administration
. The move was prompted by the Government of Iceland's acquisition of three-quarters of troubled bank Glitnir
, in which Stodir had previously held a 32% stake.
Alternates:
Reykjavík
Reykjavík is the capital and largest city in Iceland.Its latitude at 64°08' N makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...
, Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
with offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
.
The company was founded on July 20, 1973, under the name Flugleiðir. It was formed as a holding company for Loftleiðir
Loftleiðir
Loftleiðir HF, internationally known as Icelandic Airlines or Loftleiðir Icelandic, was a private Icelandic airline headquartered on the grounds of Reykjavík Airport in Reykjavík, which operated mostly trans-atlantic flights linking Europe and America, pioneering the low-cost flight business...
and Flugfélag Íslands.
Stodir was best known for its subsidiary Icelandair Group
Icelandair Group
Icelandair Group hf is an Icelandic travel industry corporation, the owner of the airline Icelandair and numerous other travel industry companies...
, which was sold in October 2006. Icelandair
Icelandair
Icelandair ehf is the flag carrier airline of Iceland, based on the grounds of Reykjavík Airport in Reykjavík. It is part of the Icelandair Group and currently operates scheduled services to 31 cities in 13 countries on both sides of the Atlantic Ocean out of its hub at Keflavík International Airport...
, Loftleidir Icelandic and other companies of Icelandair Group have been leaders in the Icelandic flight and tourism industry for about 70 years.
The company was placed into administration
Administration (insolvency)
As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – an alternative to liquidation – is often known as going...
in September 2008 after Glitnir
Glitnir (bank)
Glitnir was an international Icelandic bank. It was created by the state-directed merger of the country's three privately held banks - Alþýðubanki , Verzlunarbanki and Iðnaðarbanki - and one failing publicly held bank - Útvegsbanki - to form Íslandsbanki in 1990...
, its largest investment, was part-nationalised
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
by the Icelandic government.
Ownership
In December 2002 Baugur GroupBaugur Group
Baugur Group was an Icelandic investment company. The group applied for bankruptcy protection in February 2009, after placing its UK arm in administration.- History :...
acquired 20% of the company. Baugur Group
Baugur Group
Baugur Group was an Icelandic investment company. The group applied for bankruptcy protection in February 2009, after placing its UK arm in administration.- History :...
again was reportedly controlled by a number of companies in a single mailbox in British Virgin Islands.
Main investments
- TM, an Icelandic insuranceInsuranceIn law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
firm (99% holding) - Landic Property, a Nordic real estateReal estateIn general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
investor. (approximate 40% stake) - In July 2008 Stodir bought 39% of Baugur GroupBaugur GroupBaugur Group was an Icelandic investment company. The group applied for bankruptcy protection in February 2009, after placing its UK arm in administration.- History :...
.
Before 2005 change
The company that is nowadays called Stodir was founded in 1973. In the beginning it was a holding company for "Loftleiðir" and Flugfélag Íslands under the name Flugleidir, a hybrid of the two old names. In 1978 Flugleidir took over all assets of both companies. Until then "Loftleidir" had used "Loftleidir Icelandic", "Icelandic Airlines" or just "Icelandic" for international marketing and Flugfélag Íslands used "Icelandair". That same year the name "Icelandair" was to be used solely for international marketing. Flugleiðir was still the official name of the company until 2005.After 2005 change
In 2005, the company known as Flugleiðir was changed to an investment company called FL GROUP. The airline had been spun off into a subsidiary named Icelandair in 2002. On October 23, 2005 FL GROUP announced its acquisition of the DanishDenmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
low-cost airline Sterling Airways
Sterling Airlines
Sterling Airlines A/S was a low-cost airline with its head office at Copenhagen Airport South in Dragør, Dragør Municipality, Denmark. It was created in September 2005 through the merger of two Danish airlines — Sterling European Airlines and Maersk Air — which had been bought by the Icelandic...
. In addition, FL GROUP holds a 16.18% stake in British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
"no-frills" carrier easyJet
EasyJet
EasyJet Airline Company Limited is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports...
. On January 6, 2006, Hannes Smárason
Hannes Smárason
Hannes Smárason is an Icelandic businessman and former CEO of the FL Group.-Career:He worked for McKinsey in Boston upon graduating from MIT from 1992 to 1996 as a Management Consultant before being hired by deCODE genetics as deputy CEO....
, CEO, stated that a merger of easyJet
EasyJet
EasyJet Airline Company Limited is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports...
and Sterling
Sterling Airlines
Sterling Airlines A/S was a low-cost airline with its head office at Copenhagen Airport South in Dragør, Dragør Municipality, Denmark. It was created in September 2005 through the merger of two Danish airlines — Sterling European Airlines and Maersk Air — which had been bought by the Icelandic...
was a possibility.
More changes in 2006
In early 2006 Ferðaskrifstofa Íslands was sold to Sumarferðir and Icelandair Car Rental (Hertz) was sold to Magnús Kristinsson, the owner of Toyota in IcelandIceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
.
In February 2006 FL GROUP announced plans to list its subsidiary Icelandair Group in Iceland Stock Exchange
Iceland Stock Exchange
NASDAQ OMX Iceland or ICEX was established in 1985 as a joint venture of several banks and brokerage firms on the initiative of the central bank. Trading began in 1986 in Icelandic government bonds, and trading in equities began in 1990. Equities trading increased rapidly thereafter...
.
FL sold its 16,9% stake in British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
no-frills airline
easyJet
EasyJet
EasyJet Airline Company Limited is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports...
in April 2006 for €325m, returning a profit of €140m on its investment. FL had first invested in easyJet in October 2004, taking an 8,4% share, increasing this over the course of 2005.
In October 2006 FL GROUP secured the sale of Icelandair Group
Icelandair Group
Icelandair Group hf is an Icelandic travel industry corporation, the owner of the airline Icelandair and numerous other travel industry companies...
.
2008 revamp
2008 brought a number of changes to the company: stakes in FinnairFinnair
Finnair Plc is the flag carrier and largest airline of Finland, with its headquarters on the grounds of Helsinki Airport in Vantaa, Finland, and its main hub at Helsinki Airport. Finnair and its subsidiaries dominate both the domestic and international air travel markets in Finland. The largest...
and investment group Aktiv Kapital
Aktiv Kapital
Aktiv Kapital ASA is a Norwegian debt collection agency, with operations in 11 countries. It is the largest purchaser of non-performing consumer credit in Europe and Canada. The company was founded in 1991, and has grown through a number of acquisitions. It is listed on the Oslo Stock Exchange,...
were both divested
Divestment
In finance and economics, divestment or divestiture is the reduction of some kind of asset for either financial or ethical objectives or sale of an existing business by a firm...
in March, and the following month a 39% stake in FL was acquired by Styrkur Invest, a company controlled by FL's Chairman Jón Ásgeir Jóhannesson. The company then delisted from the Iceland Stock Exchange
Iceland Stock Exchange
NASDAQ OMX Iceland or ICEX was established in 1985 as a joint venture of several banks and brokerage firms on the initiative of the central bank. Trading began in 1986 in Icelandic government bonds, and trading in equities began in 1990. Equities trading increased rapidly thereafter...
on 6 June after a share buyback
Share repurchase
Stock repurchase is the reacquisition by a company of its own stock. In some countries, including the U.S. and the UK, a corporation can repurchase its own stock by distributing cash to existing shareholders in exchange for a fraction of the company's outstanding equity; that is, cash is exchanged...
. Jón Ásgeir stepped down as Chairman later that month after a conviction for breaking accounting laws. His wife Ingibjorg Stefania Palmadottir was elected as his replacement. On July 4, FL Group announced both that it had changed its name to Stodir and acquired a 39% stake in retail holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
Baugur Group
Baugur Group
Baugur Group was an Icelandic investment company. The group applied for bankruptcy protection in February 2009, after placing its UK arm in administration.- History :...
.
Insolvency
In September 2008 it was announced that Stodir had filed an application for a debt moratoriumDebt moratorium
A debt moratorium is a delay in the payment of debts or obligations. The term is generally used to refer to acts by national governments. A moratory law is usually passed in some special period of political or commercial stress; for instance, on several occasions during the Franco-Prussian War,...
process at the District Court of Reykjavík, effectively putting the company into administration
Administration (insolvency)
As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions. It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – an alternative to liquidation – is often known as going...
. The move was prompted by the Government of Iceland's acquisition of three-quarters of troubled bank Glitnir
Glitnir (bank)
Glitnir was an international Icelandic bank. It was created by the state-directed merger of the country's three privately held banks - Alþýðubanki , Verzlunarbanki and Iðnaðarbanki - and one failing publicly held bank - Útvegsbanki - to form Íslandsbanki in 1990...
, in which Stodir had previously held a 32% stake.
Board of directors
- Ingibjorg Stefania Palmadottir, ChairChair (official)The chairman is the highest officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office is typically elected or appointed by the members of the group. The chairman presides over meetings of the assembled group and conducts its business in an...
- Eirikur Johannsson, vice-Chairman
- Arni Hauksson
- Katrin Petursdottir
- Thorsteinn M. Jonsson
Alternates:
- Einar Thor Sverrisson
- Thordur Bogason
Key Managers
- Jón Sigurðsson, CEO
- Vidar Thorkelsson, CFO
- Bernhard Bogason, Managing director legalLawLaw is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
and taxTaxTo tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities... - Orvar Kaernested, Managing director, private equityPrivate equityPrivate equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....