The Iceland Observer: Major Deals, Fleet Expansion and Record Backlogs

MarketVector™ Iceland Global Index (MVISLG) Returns:

1W: 2.22% 1M: 4.03% 1Y: (1.30)% Inception 12/31/20: 32.05%

M&A / PE / VC

Brim Lýsi Deal Clears Review

Brim’s acquisition of Lýsi cleared the Competition Authority’s initial review, removing a major regulatory obstacle for the deal. Brim’s board previously approved the purchase of all Lýsi shares for ISK 20 billion, or roughly $161 million, reduced from the earlier ISK 30 billion offer, or roughly $242 million. Half of the payment is expected to be in cash and half in Brim shares. The deal gives Brim more exposure to fish oil, nutritional oil, and consumer marine products.

Brogent Completes Flyover Acquisition

Taiwan’s Brogent Technologies completed its acquisition of Flyover Attractions, the group that includes FlyOver Iceland in Reykjavík. The purchase price was USD 78.4 million, which Icelandic reporting translated as just under ISK 10 billion, or roughly $80.5 million. The portfolio also includes Flyover attractions in Vancouver, Las Vegas, and Chicago. Existing operations are expected to continue, and FlyOver Iceland said the Reykjavík attraction will remain locally staffed.

International & Geopolitical

EU Referendum Voting Begins Abroad

Overseas absentee voting began on July 27 for Iceland’s August 29 referendum on whether the government should resume EU accession negotiations. The vote is about reopening negotiations, not approving EU membership. A vote to resume talks would reopen questions around fisheries, agriculture, financial services, trade rules, competition policy, and currency arrangements. A vote against would leave Iceland’s current European Economic Area relationship in place without renewed accession talks.

Renewable Energy & Industry

Icelandair Adds Six Airbus Jets

Icelandair signed lease agreements with Aircastle for six Airbus A320neo aircraft. The aircraft were manufactured between 2018 and 2020 and are expected to enter service before summer 2028. The deal follows a separate agreement to lease four A320neos from AviLease. Including additional A321LR deliveries, Icelandair expects to operate 20 Airbus aircraft and retire its older Boeing 757 and 767 aircraft by early 2027.

First Water Names New CEO

First Water appointed Einar Örn Ólafsson as chief executive, replacing Eggert Þór Kristófersson. Eggert left by mutual agreement after about four years leading the company’s land based salmon operation in Þorlákshöfn. First Water credited him with helping build the operation and reach the point where the company could harvest salmon above five kilograms. Einar Örn previously served as CEO of PLAY and has also led Fjarðarlax and Skeljungur.

Corporate & Market News

Amaroq Moves to London Main Market

Amaroq completed its transfer from AIM to the London Stock Exchange’s Main Market on July 31. Trading on AIM was canceled, and the company’s shares were admitted to the commercial companies category of the FCA’s Official List. The company did not issue new shares or raise capital as part of the move. Amaroq kept the AMRQ ticker and remains listed on Nasdaq Iceland.

JBT Marel Backlog Hits Record

JBT Marel reported second quarter revenue of USD 981 million, up 5% year over year. Net income rose to USD 28 million from USD 3 million, while adjusted EBITDA increased to USD 168 million and margin improved to 17.1%. Orders reached USD 1.03 billion and exceeded USD 1 billion for the third straight quarter. Backlog reached a record USD 1.54 billion, compared with USD 1.39 billion a year earlier.

Oculis Advances MS Program

Oculis said the FDA’s Division of Neurology provided positive pre IND feedback for Privosegtor in acute multiple sclerosis relapses. The FDA confirmed that existing Privosegtor data can be cross referenced in a new Investigational New Drug application. Oculis plans to submit the IND in the fourth quarter. The feedback is a regulatory development milestone, not a drug approval.

Policy & Central Bank

IMF Review Published

The Central Bank announced the publication of the IMF’s annual Article IV report on Iceland. The review followed June meetings between an IMF mission, Icelandic authorities, and other stakeholders. The report covers Iceland’s economic conditions, risks, and policy settings. The publication is the fresh item this week, following the earlier consultation process.