[Leica] What would Blackstone do with the money from the sale of Leica stock?

[Frank Filippone]

Bid from US private equity firm Blackstone Group to buy Blue Lagoon rejected

 

The US private equity group Blackstone had hoped to acquire a major stake in
one of Iceland's best known tourist attractions.   The US private equity
group Blackstone had hoped to acquire a major stake in one of Iceland's best
known tourist attractions.   The US private equity group Blackstone had
hoped to acquire a major stake in one of Iceland's best known tourist
attractions. 

 

The Icelandic pension funds, who own a third of the poplar tourist
destination the Blue Lagoon, have vetoed a sale of a 30% stake in the lagoon
to an investment fund managed by the US private equity firm Blackstone
Group. The 30% stake which Blackstone had hoped to buy was owned by the
local utility HS Orka. Blackstone had offered 11 billion ISK (106 million
USD/90 million EUR) for the stake.

 

This is the second sale of a major tourist attraction which is thwarted at
the last minute. Earlier this year the Icelandic state used the power of
eminent domain to acquire Jökulsárlón glacial lagoon, making it a part of
Vatnajökull National Park.

 

The utility HS Orka, which operates geothermal power plants and the district
heating utility on Reykjanes peninsula, had put the 30% stake in the blue
lagoon up for sale in May. The highest bid came from a Blackstone Group
investment fund, run by one of Blackstone's top managers in Europe, Chad
Pike. Pike already has some connections to Iceland, as he owns a luxury
hotel in North Iceland, Deplar Farm. 

 

Before the sale could go through it had to be approved by the board of a
holding company Jarðvarmi which owns HS Orka. The Icelandic pension funds
own a 33.4% stake in Jarðvarmi, while a Canadian energy company Alterra owns
66.6%. While the Blackstone bid for the Blue Lagoon was significantly higher
than HS Orka had hoped to get for the stake, the pension funds decided to
veto the sale.

 

According to the sources of the local newspaper Fréttablaðið the decision by
the pension funds to veto the sale has been met with frustration from
Alterra.

 

 

Frank Filippone

 

Red735i at verizon.net