Icelandic investment vehicle FL Group has acquired a 39 per cent stake in Baugur under the new name Stodir.

Following the deal, Stodir’s equity has been boosted by ISK25 billion (£162.1 million).

The stake was acquired from Styrkur Invest – which is majority-owned by Gaumur – by a share swap and share issuing in Stodir.

Reykjavik-based Stodir, which means support or backbone in Icelandic, is a holding company with a 32 per cent stake in Icelandic bank Glitnir, among other investments. Stodir’s largest shareholder is Styrkur Invest, which has a 39 per cent stake.

Earlier this year, Baugur divested all of its assets in Iceland to focus solely on its retail investments in the UK, Scandanavia and the US. Its core operations are managed out of London, where Stodir also has an office.

Baugur’s shareholders include retail entrepreneurs Kevin Stanford and Don McCarthy. Baugur owns or has investments in UK retailers including Iceland, House of Fraser, Hamleys and Mosaic.

FL Group began life as a parent company of a number of aviation and travel-related companies, selling Icelandair in 2006. The group said the name FL Group “no longer reflects the nature of the company’s operations and investments”.

The deal is subject to approval at Stodir’s shareholder meeting, due to be held later this month.

Stodir chief executive Jon Sigurdsson said: “The Baugur transaction is an important step in streamlining the focus of our business to create a powerful new holding company with a strong and diversified portfolio of international investments.

“Baugur has established a strong position in many well-known retail brands and we have great faith in the future of the company.”