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Delta to invest USD100m into GOL

8-Dec-2011 10:06 AM

Delta Air Lines and GOL Linhas Aereas Inteligentes announced (07-Dec-2011) an agreement for a long-term exclusive commercial alliance. As part of the agreement, Delta will invest USD100 million in GOL in exchange for ADS' representing GOL’s preferred shares through the issuance of preferred share with an issue price of USD12.23 (BRL22.0) per share. The total capital increase will be up to USD150 million (BRL280 million), including the subscription rights for all GOL ́s shareholders. GOL’s board will deliberate on 21-Dec-2011 to resolve on the capital increase. 

GOL agreed to elect a Delta representative to the company’s board of directors as long as Delta holds at least 50% of the ADS' acquired in the investment. Delta agreed, for a period of 12 months, not to sell the acquired ADS' and not to acquire any further GOL shares without GOL’s consent. GOL will also transfer of the lease of the two remaining B767 aircraft in GOL ́s fleet and their spare parts to Delta.

This agreement complements Delta's codeshare relationship with Aerolineas Argentinas which will join the SkyTeam alliance in 2012, as well as a long-standing codeshare relationship with its existing SkyTeam partner Aeromexico in which Delta is planning to take an equity stake. [more - original PR - Delta] [more - original PR - GOL]

Delta: "GOL has been a strong partner for Delta in Brazil and Latin America. This agreement reinforces our relationship and moves Delta one step closer to achieving our goal of becoming the best U.S. carrier in the region. By forming a long-term commercial partnership, we will capitalize on the strengths of our two networks to provide expanded customer benefits and better serve the U.S.- Brazil marketplace," Richard Anderson, CEO.

GOL: "The agreement is in line with GOL's strategy of seeking out long-term partnerships and strengthening its capital structure with a focus on generating value to its shareholders. Delta's vast experience in the U.S., the industry's most developed market, combined with Brazilian commercial aviation's growth potential, provides an opportunity to improve our business model and return on capital employed over the next years. Our customers will benefit from additional flight options, more flexibility and new products and services," Constantino de Oliveira Junior, CEO.