Frozen food specialist Iceland is expected to pay a dividend of £100m this year, its first for three years.

The money will go to management, including founder Malcolm Walker, and the bust Icelandic banks that have stakes in the retailer.

Iceland last paid a dividend after it refinanced in 2007. The food group paid of its debts last year and a dividend, for the year to the end of March, will be paid from cash reserves the Financial Times reported.

Iceland is expected to post EBITDA of about £190m this year, up around £10m on the previous year.

The retailer’s success will stoke ongoing speculation that it will soon be put up for sale by the resolution committee of failed Icelandic bank Landsbanki.

Walker, who has a 26% stake in Iceland, attempted to buy the business for £1bn last year but was rebuffed.

Separately, Iceland is in talks with partners in Eastern Europe to roll out Iceland to new markets, according to the Daily Mail.