Baugur Group

Baugur Group is an Icelandic investment company.

History

Hagkaup was established over 50 years ago and was a retailing pioneer, opening both supermarkets and department stores in Iceland. Hagkaup and Bonus merged as Baugur in 1998 and Johannesson became the company's President and CEO. Baugur was listed on Icelandic Stock Exchange the same year.

In 1999 Baugur signed franchise agreements with The Arcadia Group and Debenhams for Scandinavia and today Hagar, (formerly Baugur-Iceland) runs several Topshop and Miss Selfridge stores in Iceland and Sweden as well as 3 Debenhams stores.

The company grew up to be the largest in the retail sector in Iceland. Baugur Group has continued to grow and flourish under the guidance of Mr. Jóhannesson and at the end of the year 2003 no other privately owned Icelandic company had larger operations abroad, in addition to being the largest in Iceland

Baugur changes to Baugur Group

In 2002 proposals were approved concerning a change in the name of Baugur hf. to Baugur Group hf., and changes to the companys organizational structure.

Baugur hf. was divided into three independent profit centres: Baugur-Iceland, Bonus Stores Inc. and Baugur-ID. Baugur hf. changed its name to Baugur Group hf. and became a holding company.

Baugur Group delisted from ICEX

In May 2003 a redemption offer worth 10.85 Icelandic krónur (£0.09) was made by Mundur, for the outstanding stock. (Mundur holding company is backed by Gaumur, KB Banki, an Icelandic investment bank; and two private investors) and in July 2003 Baugur Group was delisted from the Iceland Stock Exchange.

The year 2003 was a milestone in Baugur Group's foreign operations. At the beginning of
the year Baugur Group held shares in a few listed companies in Britain whereas at the end
of the year no other Icelandic company had as extensive operations outside of Iceland.

Briefly it can be said that Baugur Group's investment activities in Britain can be split into
two categories. On one hand Baugur Group continued to invest in listed companies that
are regarded to have better futures, either because their current management is in the
process of improving the company's operation, or because new shareholders are expected
to step in to instigate improvement. Among the companies, which Baugur Group has
invested in on these premises are the Big Food Group, House of Fraser and Somerfield.

On the other hand Baugur Group has formed a strategy to take part in management takeovers.
These companies control strong brand names and are considered to have substantial
opportunities for growth, show a net profit, and management has shown and proven its
ability to succeed. During the year 2003 Baugur Group acquired three such companies, Hamley's,
Oasis and Julian Graves.

In May 2004 Baugur Group, along with other investors, acquired the majority in the British jewellery chain Goldsmiths for the amount of ISK 14.4 billion, in cooperation with the company's management

Baugur Companies

Hagar