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 tomorrow, 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.