Iceland’s PLAY Raises $20M After Delisting Plan Dropped

Icelandic low-cost carrier PLAY has raised ISK 2.4 billion (USD 20 million) through a convertible bond offering after executives withdrew a takeover bid aimed at delisting the airline from Nasdaq Iceland.

The bid was led by CEO Einar Örn Ólafsson and board vice-chair Elías Skúli Skúlason through their investment vehicle, BBL 212 hf., which proposed acquiring 100% of PLAY’s shares. However, strong shareholder opposition to the delisting prompted them to drop the offer.

Despite the withdrawal, the executives said PLAY’s long-term strategy remains unchanged. “The takeover plan was well received, but discussions revealed that many shareholders prefer to keep PLAY publicly listed,” BBL 212 said in a statement. “The group will continue supporting the company’s strategic direction.”

Instead of a buyout, PLAY secured two-year convertible bonds with a fixed 17.5% interest rate. Bondholders can convert bonds into shares at a rate of ISK 1 (USD 0.008) and will receive purchase rights to a 30% stake in PLAY’s Maltese subsidiary, PLAY Europe.

The funds will be used to support a major strategic shift. The airline plans to cease hub operations at Reykjavik Keflavik and focus on point-to-point leisure routes from Iceland. Additionally, PLAY will expand its ACMI (aircraft, crew, maintenance, and insurance) leasing business and transition from its Icelandic air operator’s certificate to the Maltese one.

Bond issuance is contingent on final corporate approvals. The capital injection is expected to fuel PLAY’s new growth model amid evolving market conditions.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com