Loftleidir Icelandic’s subsidiary acquires majority of shares of Cabo Verde Airlines

Icelandair Group has issued this statement:

The binding offer submitted by Loftleidir Cabo Verde to acquire 51% of the shares of Cabo Verde Airlines has been accepted. The share purchase agreement was signed on Friday, March 1, 2019.

Icelandair Group believes that there are opportunities to build the company up as a strong hub and spoke airline with Cape Verde as a connecting hub between continents. Cabo Verde Airlines will benefit from the experience and knowledge within Icelandair which has a similar business model.

Loftleidir Icelandic, which is a subsidiary of Icelandair Group, holds a 70% stake in Loftleidir Cabo Verde, and other investors 30%.

The acquisition of Cabo Verde Airlines does not have a 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 be classified as an associated company.

Cabo Verde Airlines issued this short statement:

Today marks the beginning of the new Cabo Verde Airlines. This is the result of a long process that took time, dedication and, essentially, reliance from the Cape Verdean Government and investors. We are looking towards the future and in making Cabo Verde a point of connection between continents. Thank you for your trust and come with us in this new journey!

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