Loftleidir Icelandic's subsidiary submits binding offer for majority shares of Cabo Verde Airlines

The purchase price is confidential. However, the acquisition would partly be paid for by the work already completed by Loftleidir Icelandic's employees. The acquisition is made through a new company, Loftleidir Cabo Verde. Loftleidir Icelandic holds a 70% stake in the company, and other...

Loftleidir Icelandic, 23/11/2018 (informazione.news - comunicati stampa - turismo)

The purchase price is confidential. However, the acquisition would partly be paid for by the work already completed by Loftleidir Icelandic's employees. The acquisition is made through a new company, Loftleidir Cabo Verde. Loftleidir Icelandic holds a 70% stake in the company, and other investors 30%. Loftleidir Icelandic's acquisition of Cabo Verde Airlines does not have significant effect on Icelandair Group's financial statements since Cabo Verde Airlines will not be reflected in the group's consolidated financial statements. The share will classified as an associated company.   

Árni Hermannsson, Managing Director of Loftleidir Icelandic:
“The participation in the acquisition of a majority share in Cabo Verde Airlines holds great opportunities for Loftleidir Icelandic, especially in light of the expected growth in passenger demand in Africa in the coming years. We have already participated in the restructuring of the company, and Cabo Verde Airlines' operations are well suited to Loftleidir Icelandic's projects around the world. The knowledge and experience already available within Loftleidir Icelandic and its sister companies has come to good use in restructuring the company and will continue to assist in further developments. Further opportunities are related to shared use of airplanes from Icelandair Group's fleet, and crews where applicable, as is already being done in various projects. In developing connecting routes, we can also draw further on Icelandair's experience. In the case of Cabo Verde Airlines, we have opportunities for well-organized connecting routes between Europe and South America on one hand, and West Africa and North America on the other, along with West Africa and Europe. The island's location is ideal for developing connecting flights.”

For further information, please contact:
Erlendur Svavarsson, SVP Sales and Marketing at Loftleidir Icelandic,
email: esv@loftleidir.com