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Delta Air Lines to invest USD100m in Brazil's GOL.

MANews-(C)2009-2011

7 December 2011 - Brazilian low-fare airline GOL Linhas Aereas Inteligentes SA (SAO:GOLL4; NYSE:GOL) said on Wednesday that US carrier Delta Air Lines Inc (NYSE:DAL) will buy a strategic minority stake in it in exchange for a USD100m (EUR75m) investment.

The deal will be carried out as part of a capital hike at GOL, which will issue preferred shares ADSs to the US rival, the target company said in a statement.

Should Delta hold at least 50% of GOL's ADSs, the US airline will get one seat in GOL's board.

The BRL280m (USD156.3m/EUR117m) capital increase will be cleared by GOL's board on 21 December, the company said, adding that the cash from Delta will be used to finance another capital increase of the same amount as the first one.

As part of the deal, Delta and GOL have also entered into a long-term commercial agreement aimed at enhancing their operational partnership and deriving more synergies.

The pact with Delta is expected to improve GOL's balance sheet and help it seek new markets and revenues sources, the company said.Country: , BrazilSector: Air TransportTarget: GOL Linhas Aereas Inteligentes SABuyer: Delta Air Lines IncDeal size in USD: 100mType: StakebuildingStatus: Agreed

.END.PUB430>PDDecember 7, 2011>JNMANEWS.PRICEDATENOT APPLICABLE.DAY

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Publication:M & A Navigator
Date:Dec 7, 2011
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