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GOL announces pricing of global share offering, reinforcing cash position by R$627.1M

Direct News Source

19-Oct-2009 With a stronger balance sheet, GOL is prepared to benefit from the growth of air transport in Brazil and Latin America

GOL Linhas Aéreas Inteligentes S.A., the largest low-cost and low-fare airline in Latin America, hereby announces the conclusion of its global share offering, which increased its cash position by R$627.1 million.

With an improved cash position that now represents more than 20% of its net revenues recorded during the last twelve months, and with its other competitive advantages: (i) the flight frequency leader between Brazil's main airports, (ii) Leadership in Latin America in low operating cost structure, number of affiliates in its mileage program (6.4 million) and e-commerce sales, and (iii) state-of-the-art corporate governance practices, GOL believes it is well structured to benefit from the growth of air transport in Brazil and Latin America.

"The success of the offering has put GOL among the world's most capitalized airlines. This will create shareholder value because it will allow the Company to develop its strategic plan in a flexible manner and with a focus on results," declared Leonardo Pereira, Vice-President and Chief Financial and Investor Relations Officer.

"With VoeFácil program (FlyEasy program) and our low-cost structure, we expect to will attract more of the new Brazilian middle-income population, making air transport even more popular in Brazil. In addition, the SMILES program and the high frequency of our flights should allow us to continue attracting more business travelers, while our e-commerce platform, together with GOLLOG, our cargo transport unit, are increasing our ancillary revenues" added Constantino de Oliveira Junior, GOL's founder and CEO.

Our high quality of our operations, backed by a modern and standardized fleet of next generation Boeing 737 aircraft, ensures regular, punctual flights, and has made us achieve the leadership in terms of operating profitability in the Brazilian industry.

The offering comprised 62.2 million common and preferred shares (38.0 million in the primary offering, totaling R$627,1million) at R$16.50 per share (US$ 9.48 per ADS), totaling R$1,026.1 million.