November 29, 2018

Icelandair cancels Wow Air acquisition

Icelandair Group announced on 29 November that acquisition of rival Icelandic carrier Wow Air, based on a share purchase agreement signed on 5 November, stands cancelled.

Icelandair Group had estimated that it would be unlikely for all conditions to the agreement to be met by the shareholders meeting on 30 November.

As a result, it is unlikely that the board of directors of Icelandair Group can recommend to shareholders that they agree to the purchase agreement.

In addition, the board does not intend to submit to the shareholders meeting a proposal to postpone decision-making on the purchase agreement.

Due to this situation, both of the parties agree to abandon the purchase agreement.

Icelandair had agreed to acquire Wow Air for approximately $18 million in an all-share deal.