Stodir

Infobox_Company
company_name = Stodir
company_
company_type = Private
foundation = 1973
location = Reykjavík, Iceland
key_people = Ingibjorg Stefania Palmadottir (Chairman of the board), Jón Sigurðsson (CEO)
industry = Investment
assets = ISK 422.3 billion (2007)cite web |url=http://flgroup.is/library/61 |title=Annual Report 2007 |publisher=FL Group |accessdate=2008-05-07]
net_income = loss (ISK 67.3 billion) (2007)
num_employees = 78 (2007)
homepage = [http://stodir.is/ www.stodir.is]
intl = yes

Stodir ( _is. Stoðir, FL Group prior to 4 June 2008) 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.

Main investments

* TM, an Icelandic insurance firm (99% holding)
* Landic Property, an Nordic real estate investor. (approximate 40% stake)
* Baugur Group, a retail investment company (39% stake)

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 Danish 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.

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 Iceland.

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.

2008 revamp

2008 brought a number of changes to the company: stakes in Finnair [cite news|url=http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL3190940120080331|title=FL sells 12.7 pct Finnair stake, books loss|date=31 March 2008|work=Reuters|accessdate=2008-07-09] and investment group Aktiv Kapital [cite web|url=http://flgroup.is/Investor-and-Media-center/News-Archive/News/~/NewsId/36|title=FL Group divests its shares in Aktiv Kapital|date=5 March 2008|publisher=FL Group|accessdate=2008-07-09] 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. [cite web|url=http://flgroup.is/Investor-and-Media-center/News-Archive/News/~/NewsId/25|title=Press release from Styrkur Invest |date=8 April 2008|publisher=FL Group|accessdate=2008-07-09] The company then delisted from the Iceland Stock Exchange on 6 June after a share buyback. [cite web|url=http://flgroup.is/Investor-and-Media-center/News-Archive/News/~/NewsId/10|title=FL Group's request for removal from trading approved|date=23 May 2008|publisher=FL Group|accessdate=2008-07-09] Jón Ásgeir stepped down as Chairman later that month after a conviction for breaking accounting laws.cite news|url=http://uk.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUKL0421463220080704|title=Iceland's Stodir buys 39 pct stake in Baugur|date=4 July 2008|work=Reuters|accessdate=2008-07-09] His wife [cite news|url=http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article4265253.ece|title=Baugur to confirm relocation to UK|last=Hawkes|first=Steve|coauthors=Helga, Hildur|date=3 July 2008|work=The Times|accessdate=2008-07-09] Ingibjorg Stefania Palmadottir was elected as his replacement. [cite web|url=http://www.flgroup.is/Investor-and-Media-center/News-Archive/News/~/NewsId/7|title=Results of FL Group's shareholders meeting|date=19 Jun 2008|publisher=FL Group|accessdate=2008-07-09] 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.

Insolvency

In September 2008 it was announced that Stodir had filed an application for a debt moratorium process at the District Court of Reykjavík, effectively putting the company into administration.cite news|url=http://www.hemscott.com/news/static/tfn/item.do?newsId=67476084108991|title=Iceland's Stodir says applies for moratorium|date=29 September 2008|publisher=Hemscott] 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.

Management

Board of directors

* Ingibjorg Stefania Palmadottir, Chair
* 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 legal and tax
* Orvar Kaernested, Managing director, private equity

References

External links

* [http://www.stodir.is/ Stodir's Web Site]
* [http://icelandreview.com/icelandreview/daily_news/?ew_news_onlyarea=content1&ew_news_onlyposition=0&cat_id=16567&ew_0_a_id=141593 Iceland Review]