Cabo Verde Airlines 757
Cabo Verde Airlines 757

Icelandair buys 51% of Cabo Verde Airlines

The Cape Verde Government formalised this Friday the privatisation of the Cabo Verde Airlines (TACV), through the sale of 51% of their shares to Lofleidir Cape Verde. A company owned 70% by Loftleidir Icelandic EHF and 30% by entrepreneurs Icelanders.

Loftleidir Cape Verde paid 1.3 million euros for more than 50% of the airline’s capital and invested 6 million dollars in the capitalisation. The State assumes old TACV debts.

TACV_Cabo Verde Airlines
TACV Boeing 757 departing Lisbon (By Duarte Gomes)

In a statement made available by the Government:

“The equity value of the airline was set at 9.2 million euros in wich 5.48 million representing real estate assets. But was possible to exclude all real estate assets of this transaction so the value was seat to 3.7 million euros. The agreed amount for the acquisition of 51% of the airline’s capital between the State and the strategic partner is € 1.3 million “

“6 million euros of capital will be injected by the strategic partner for the capitalization of the airline, totaling about 7.3 million euros”

As for the remaining 49% of the capital held by the State, the shareholder will continue its divestiture in TACV. They will shortly sell 10% of it to workers and emigrants, the rest of the shares (39%) will be sold this year to national and international investors.

TACV_Old Livery
The old livery of TACV in Lisbon (By Duarte Gomes)

According to the Cape Verde government, the signing of the 51% share purchase agreement is “a historic moment for Cape Verde that ensures continuity” of the “flag company”. Also an important step towards the materialisation of the Hub which will be based on the island of Sal.

“The country will have a greater number of air connections with the world to support the development of tourism. As well as closer proximity between Cape Verde and our emigrant community”

Cape Verde is an archipelago located off the coast of West Africa.  It is located halfway between Europe and Latin America in the South Atlantic.

Cabo Verde Airline operates with three Boeing 757, two of them are owned by Icelandair. They operate to Boston, Lisbon, Paris, Dakar, Fortaleza, Recife, and Salvador da Bahia.


Featured Image by Rui Cardoso