Baugur Group among others buy Illum Warehouse Denmark

August 5, 2005

I-Holding ehf, a Icelandic investment company owned by Baugur Group, Straumur investment bank, B2B Holdings and Birgis Bieltvedts, has bought 80% in Illum warehouse in Denmark from Merrill Lynch International Global Principal Investment. The same group recently bought Wessel & Vett A/S and Magasin du Nord, so it already owned 20% in Illum.

Illum will be run separately from Magasin du Nord.

Illum reported a profit and 11% gain in sales the first three months of 2005.

Skarphéðni Berg Steinarssyni from Nordic Investment at Baugur Group said the Danish retail market is increasing and they believe in Illum because it's a well known brand in Denmark.

Icelanders invest in Denmark and UK

Icelandic companies have been investing heavily in Denmark for the last few years. Recently the Fons Investment ehf. bought the Danish airlines Sterling Air and Mearsk Air. Eimskip, a shipping company in Iceland, recently bought the shipping division of Mearsk. I-Holdings have been investing heavily in the Denish retailer market.

Baugur Group, as well as FL Group, have been investing in the UK market. FL Group has bought 11% in easyJet.com and has shown an interest in buying more. Baugur Group has been investing in the retailer market and has bought among other things Iceland supermarket chain as well as Hamleys, a well known toy store.