Iceland founder Malcolm Walker has negotiated a reduction in the amount he is paying to return the grocer to full family ownership, with the former majority stakeholder agreeing a discount in exchange for early payment.
Walker agreed with Brait to return Iceland to full family control in June for £115m, paid in three instalments – the first £60m tranche being paid up front, with subsequent payments of £26.9m due on 30 July next year, and £28.1m 12 months later.
However, both Walker and Brait have since agreed to settle the remaining sum now, with the South African conglomerate agreeing to slash as much as £5m off the final price, according to Sky News.
The early payment of the remaining £50m balance was sought by Brait as it faces the prospect of losing money on its other main UK retail investment New Look.
Brait also owns gym chain Virgin Active, which has been badly hit by the ongoing coronavirus pandemic.
The frozen food specialist trades from more than 1,000 Iceland and The Food Warehouse fascias across the UK, but faces increasing competition in the discount sphere from the likes of Aldi and Lidl, as well as B&M, which has increasingly begun to move into grocery.
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