The privatisation process of the international business of Cabo Verde’s flasghip airline TACV is due to be completed by the end of the first quarter of 2018 after the company is valued, said the Minister of Finance, after speaking to members of the Finance and Budget Parliamentary Commission.
Minister Olavo Correia said that the valuation should be ready at the beginning of 2018, and the government wants to finalise the process quickly, “because the sooner it is concluded, the better for everyone,” according to the archipelago’s press.
TACV is being managed under an agreement with Icelandair, an Icelandic group that the minister has admitted could be a strategic partner in the privatisation of the international business of TACV.
During the parliamentary hearing, the minister noted the state of “bankruptcy” in which the present government found TACV, with 30 million euros of annual losses, saying that liquidation of the company was considered, but it would cost the taxpayer around 60 million euros.
Therefore, he said the government had carried out a “high risk operation,” by restructuring but which has been “successful” so far. The other aspect of the operation was handing over domestic flights exclusively to Binter Cabo Verde, in exchange for 30% of the share capital of the company
The memorandum signed with Binter Cape Verde provides that, in addition to the 30% for domestic routes, the State can still buy another 19% of the capital, with Correia giving assurances that the State’s stake in the company is temporary and will later be sold, “because the government does not want to have a new public company in the air transport sector, either domestic or international.” (macauhub)