Skip to main content

Sýn hf.: Sale and leaseback of passive mobile infrastructure

Written by Customer Service on . Posted in Public Companies.

Today Sýn hf. signed an agreement pertaining to a sale and leaseback of passive mobile infrastructure to international investors.
The terms indicate that the profit from the transaction amounts to over 6 billion ISK. 

The financial statements of Sýn hf. is prepared in accordance with International Financial Reporting Standards (IFRS). Under IFRS the transaction will be treated as sale and leaseback of the assets. According to that treatment, the gain of the transaction will not be recognized from the outset through P/L.  Instead it will be proportionate based on the fair value of the asset sold and the present value of expected lease liability. Currently this is estimated to be around 80-85%. Thus 15-20% of the profit will be recognized through the P/L at closing and the remainder will be applied towards the right of use assets which will be reflected in lower depreciation over the estimated life of the lease agreement. Final assumptions in the estimate of the present value of the lease liability have not been fully verified and thus these assumptions may change.

As the right of use asset will be considerably lower than the lease liability the effect on EBITDA will be immaterial. The interest expenses on the lease liability will be recognized fully through financial expenses.

The transaction will strengthen the balance sheet and improve the liquidity position of the Company.
The terms assume a long-term lease agreement which will guarantee Sýn’s access to the passive mobile infrastructure.  All active mobile equipment will be owned and operated by Sýn hf. 

The agreements are subject to approval of the Icelandic Competition Authority, as well as other closing conditions that are conventional in this type of Transaction.

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.