The Mozambican government will sell 91% of LAM shares to raise 130 million USD. This decision was approved by the Council of Ministers and is aimed at funding the purchase of eight aircraft and restructuring the airline. Options for acquisition include local companies like EMOSE and Cahora Bassa.
The Mozambican government has made a significant decision to divest 91% of its shares in the national airline, Mozambique Airlines Company (LAM). This resolution received approval from the Council of Ministers recently and includes allowing the Ports and Railways of Mozambique, Cahora Bassa Hydroelectric Plant, and EMOSE insurance company to acquire the shares. This move is part of a broader strategy for the airline’s future.
LAM has faced considerable challenges over the years, prompting the government to explore restructuring options. By selling the majority of its shares, the Ministry aims to generate funds for not only repairing the airline’s operations but also for expanding its fleet through the purchase of eight new aircraft. This initiative is seen as a critical step towards revitalizing the national carrier.
The sale is expected to generate approximately 130 million USD, which will be reinvested into LAM’s operations. By transferring shares to these companies, the Mozambican government intends to enhance the sustainability and operational efficiency of its flag carrier. Overall, this decision represents a strategic shift aimed at securing the airline’s future in a challenging market.
Original Source: clubofmozambique.com
