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Home Airlines Cabo Verde Airlines An Icelandair Group subsidiary acquires majority of shares of Cabo Verde Airlines...

An Icelandair Group subsidiary acquires majority of shares of Cabo Verde Airlines to develop it as a hub and spoke airline

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Cabo Verde Airlines Boeing 737-800 D4-CBY © Pieter van Marion on Wikimedia

Referring to Icelandair Group’s stock exchange release on 23 November, 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 is expected to be signed on Friday, 1 March.

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.

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