In an expected follow-up of the agreement announced in September 2021, GOL Linhas Aéreas Inteligentes has just communicated that it has entered into “definitive arrangements” for American Airlines’ major investment in the company.
Along with the expansion of its commercial cooperation with American Airlines, the Brazilian carrier is advancing on AA’s $200 million equity investment for 22.2 million newly issued preferred shares of GOL. This represents a 5.2% participation in GOL’s economic interest.
The closing of the transaction, including the issuance and payment for newly issued preferred shares of GOL, is subject to customary closing conditions. This includes antitrust approval in Brazil.
Furthermore, all holders of the Company’s preferred shares, including in the form of ADRs, will be able to exercise their preemptive rights to subscribe to newly issued shares proportionate to their shareholdings.
Detailed terms and conditions of the capital increase are expected to be approved by the Board of Directors of GOL and disclosed in due course. This will include the final amount in Brazilian reais of the capital increase, issuance price, and the record date. Also, it will determine the periods and procedures for the exercise of preemptive rights by the shareholders of the Company.
The right to proportionally subscribe for preferred shares according to the preemptive rights referred to in this release has not been registered with the U.S. Securities and Exchange Commission. It will not be offered or extended absent registration or an applicable exemption from registration requirements.
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