Fish processor Samherji Holding has been allowed to scrap its proposed $217m takeover of Icelandic container line Eimskip.
The company boosted its stake in the liner and reefer operator to 30.1% earlier last month, triggering a mandatory offer to other shareholders within four weeks.
But Samherji quickly submitted a notice to the Central Bank of Iceland's Financial Supervisory Authority (FSA), requesting an exemption from this requirement due to the turmoil caused by the pandemic.
The FSA has now agreed to grant it an exemption from its mandatory bid obligation, "given the current situation across financial markets, both in Iceland and the world."
The FSA believes the decision guarantees the interests of and protection for minority shareholders.
Samherji cannot now make a takeover bid for six months from the date the company requested exemption.
'Extraordinary conditions'
"There are currently extraordinary conditions in the financial market. We did not believe it was wise to issue a takeover bid in the current turmoil, but we all hope that the situation will be better later. Like we have stated before, our belief in Eimskip's future has not changed," said Bjorgolfur Johannsson, chief executive of Samherji.
It is not clear if the FSA has set any conditions for the exemption, for example a deadline to bring its holding back below the 30% threshold.
Eimskip operates 16 boxships and reefers, plus a ferry.
The liner operator is majority owned by Icelandic pension funds that collectively hold more than 50% of the share capital, and has a market capitalisation of ISK 27.9bn ($217m).
As of 27 February, the next two biggest shareholders were The Pension Fund of Commerce, which controls 14.9%, and Gildi Pension Fund, which have a 13.4% stake.
Eimskip itself holds 2.8% of its own shares. It is not commenting on the takeover.
