The Mozambican government believes that the sale of shares in Mozambique Airlines (LAM) to the state business sector was the best way for the government to inject funds into the company.

According to the government spokesman, Inocêncio Impissa, who is also the Minister for State Administration and the Civil Service, who was speaking this Friday (07) at a press conference to share the national situation, this decision was taken after the conclusion of an evaluation study.

"The state took this decision following the conclusion of a study to evaluate the mechanisms to be adopted for the revitalization of the flag carrier, and it was concluded that the sale of shares to companies in the state business sector would be the best way to inject funds for the restructuring and acquisition of eight aircraft," said Inocêncio Impissa.

Thus, according to the minister, following the decision taken by the government in the Council of Ministers, Hidroeléctrica de Cahora Bassa (HCB), Caminhos de Ferro de Moçambique (CFM) and Empresa Moçambicana de Seguros (Emose) - companies in which the state has a stake - will have to evaluate the proposal to acquire 91% of the state's financial shares in Mozambique Airlines (LAM).

"The companies authorized to acquire the state's shares in LAM must evaluate their acquisition conditions, as well as approve the financing models for the purchase of LAM," he added.

The Mozambican state decided on Tuesday (04) to sell 91% of its stake in the company, worth an estimated 130 million dollars, through private negotiation, in a new effort to revitalize the Mozambican airline, which has been in a critical situation for years.

According to the Executive, the companies that will acquire LAM's shares will have to provide periodic information to the government in order to analyze the impacts of their intervention in the restructuring plan for the state-owned airline.

(Photo DR)