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Bakkavör founders could reinvest in the business

By Mike Stones , 11-May-2012

The Iceland quoted Bakkavör has a syndicated bank facility of £380M

The Iceland quoted Bakkavör has a syndicated bank facility of £380M

The two Icelandic food entrepreneurs who founded the own-label food manufacturing business Bakkavör could acquire up to a quarter of the group’s shares, following financial restructuring talks.

The founders, brothers Ágúst and Lýður Guðmundsson, could be allowed to acquire the shares subject to confirmation at a shareholders’ meeting to be held later this month, according to the publication Icelandic Review.

Earlier this month the firm confirmed that it was negotiating with its lenders for an early conversion of its convertible loan agreement into equity and to reorganise its corporate structure.

Iceland quoted

The Iceland quoted firm has a syndicated bank facility of £380M.

Bakkavör recently opened a new facility at its Caledonian Produce site in Bo’ness, West Lothian. The new factory, which will create 120 jobs, will make nut-based products exclusively for Marks & Spencer.

The new jobs will bring the total number of employees at the site to more than 1,100.

Bakkavör operates more than 20 business units in the UK including: Bourne, English Village Salads and Katsouris Foods,