Purchase of stake in Binter Cabo Verde requires public investment of US$1.27 million

29 May 2017

The acquisition of a 49% stake in the capital of airline Binter Cabo Verde by the archipelago’s government will require an investment of just 19%, given that 30% corresponds to the commercial concession of domestic and regional routes, the Prime Minister of Cabo Verde said.

Prime Minister Ulisses Correia e Silva, speaking in Praia, on the sidelines of the inauguration of the new Business School of the University of Cabo Verde (Cape Verde), also said that the state’s stake will later be made available to national investors.

Binter Cabo Verde from 1 August, will run, on an exclusive basis, the domestic flights in the archipelago, as well as the links with Senegal and Guinea-Bissau, under a partnership that includes the Cape Verdean State taking on 49% of the company.

In December 2016, Binter Cabo Verde increased its capital to 664 410 000 Cape Verdean escudos, representing 664 410 shares with a nominal value of 1,000 Cape Verdean escudos.

The purchase of 49% of Binter Cabo Verde means the Cape Verdean State has 325,560 shares.

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.

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 now be served by Binter Cabo Verde. (macauhub)