Iceland Foods auction delayed

Sonnie Ehrendal
18 November 2011

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TPG, Bain, Blackstone and BC Partners have reportedly submitted first-round bids for frozen food retailer Iceland Foods - but the auction is being delayed, according to media reports.

According to the Financial Times, the failed Icelandic bank Landsbanki, which holds a 67% stake in the company has closed a first round of bids and is expected to launch a second round in January.

Second-round bids were initially to be submitted in December, but the schedule was delayed following discussions among shareholders regarding the amount of information to be disclosed to suitors.

It was reported that founder and CEO Malcolm Walker, who holds a 23% stake with management, made a £1bn bid for Iceland a year ago but did not participate in the first round, as he is allowed to match any winning offer.

External bidders, including trade players ASDA and Wm Morrison, valued the company at £1.3-1.5bn. Competitors to Iceland would, however, be unable to acquire the whole business due to regulation.