- The capital increase will be allocated to share capital and capital reserve, where 1.73 per share will be allocated to share capital and 17.39 per share will be allocated to capital reserve;
- Like other tour operators, CVC was strongly affected by the pandemic.
Brazil‘s travel group CVC‘s board of directors approved a capital increase of up to BRL 480 million, through the issuance of a maximum of 25,104,603 shares for private subscription at BRL 19.12 each, according to a material fact sent to the Brazilian Securities and Exchange Commission (CVM, in Portuguese) late Monday.
The capital increase will be allocated to share capital and capital reserve, where 1.73 per share will be allocated to share capital and 17.39 per share will be allocated to capital reserve. The funds will be used in payment of part of the balance of debentures, strategic initiatives, and corporate use.
Earlier this year, CVC said it would create a “thematic marketplace” of travel products, including offerings aimed at specific audiences such as the elderly, religious and LGBT.
Like other tour operators, CVC was strongly affected by the pandemic. The CEO of the company, Leonel Andrade Neto, said at the time that the recovery of the national tourism market, which had been gearing up in the second half of last year, slowed down at the end of the year amid the second wave of COVID-19.
But he expects a “very strong” recovery as of the second half of 2021, amid the progress of the vaccination programs.
