Fish processing company Samherji is attempting to avoid taking over Icelandic container line Eimskip due to the coronavirus chaos.
The company boosted its stake in the liner operator to 30.1% earlier this month, triggering a mandatory offer to other shareholders within four weeks.
But Samherji has now said it has submitted a notice to the Central Bank of Iceland's Financial Supervisory Authority (FSA), requesting an exemption from this requirement.
The outfit has cited "unique circumstances" that have arisen in financial markets due to the spread of Covid-19, saying the virus' spread has created an unprecedented situation in the Icelandic economy.
The FSA can grant exemptions in special circumstances, Samherji added.
"In just a few days, the entire economic environment has changed dramatically, well beyond what was projected," said Samherji interim chief executive Bjorgolfur Johannsson.
"The impact is widespread and has had a chain-reaction across the financial market and the economy as a whole. We do not think it wise to issue a takeover bid in the current turmoil."
But he added: "We all hope that the situation will be better sooner rather than later. Our belief in Eimskip's future has not changed."
Under review
The matter is now under review by the FSA, which could set conditions for the exemption, for example a deadline to bring its holding back below the 30% threshold.
As of last week, all Eimskip's sailing and distribution routes were open.
"Border closures in many countries are delaying the trucking traffic in continental Europe," it added.
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.
