Government of Cabo Verde buys 49% of Binter Cabo Verde airline

26 May 2017

Airline Binter Canarias concluded the sale of a 49% stake in Binter Cabo Verde to the government of the West African archipelago, according to Spanish newspaper ABC, which added that in return Cabo Verde’s (Cape Verde’s) flagship airline will stop flying between islands as of 1 August.

The newspaper also wrote that the 49% stake acquired by the archipelago’s government will eventually be sold to third parties in order to amortise the business.

Binter Canarias, 100% owned by Hesperia Inversiones Aéreas, a group of investors from the Canary Islands, began negotiations leading to the sale of the 49% stake in December 2016, after subsidiary Binter Cabo Verde began to fly between islands in June of that year.

ABC also wrote that the deal was due to the fact that the archipelago’s government wants the image of the country as a tourist destination to remain unaffected, following the near bankruptcy of the country’s flagship airline, Transportes Aéreos de Cabo Verde (TACV).

The stake now bought by the Cape Verdean government will later be put up for sale, most likely on the stock market, although the newspaper did not know which market: Lisbon, New York or even Cabo Verde.

Economy Minister José Gonçalves announced on Tuesday that Cabo Verde’s Transportes Aéreos de Cabo Verde (TACV) would stop flying between islands from 1 August and these routes will be served by Binter Cabo Verde. (macauhub)