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Brazil's travel group CVC approves capital increase of up to BRL 480 million at BRL 19.12 per share

According to CVC, proceeds will be used in payment of part of the balance of debentures, strategic initiatives, and corporate use

Photo: REUTERS/Amanda Perobelli
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  • 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.

READ ALSO: Brazil’s largest tour operator CVC will bet on home-rental platform VHC, acquired four years ago, to resume growth in 2021

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.

READ ALSO: Coronavirus variants and restrict borders: 2021 will still be mostly a year for domestic travels in Brazil

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.

READ ALSO: Brazil’s travel group CVC Brasil to shut down operations of its Mexican and Colombian arm Almundo

But he expects a “very strong” recovery as of the second half of 2021, amid the progress of the vaccination programs.

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