If the merger is implemented, Azul and Gol will maintain their operating certificates segregated under a single resulting listed entity.
Brazilian airline Azul has signed a non-binding memorandum of understanding with Grupo Abra, the holding company comprising airlines Gol (Brazil) and Avianca (Colombia), aligning the terms and conditions for the potential business combination between Azul and Gol, in accordance with the structure to be defined between the parties.
The memorandum describes the parties' understandings regarding the governance of the entity resulting from the transaction and reinforces the interest of both companies in continuing negotiations regarding the proposed share exchange and other terms of the transaction.
If the merger is implemented, Azul and Gol will maintain their operating certificates segregated under a single resulting listed entity, and other areas are expected to be combined to offer more opportunities and products to customers and achieve efficiency gains.
The improvements in customer offerings and efficiencies generated by this operation will allow the resulting entity to continue growing and developing aviation in Brazil, through a network that serves the largest number of destinations in the country, supported by a flexible fleet, "with a focus on service excellence."
Closing of the transaction is subject to agreement between Abra and Azul regarding economic terms, satisfactory completion of due diligence, execution of definitive agreements, obtaining corporate and regulatory approvals (including from the Brazilian antitrust authority) and satisfaction of customary closing conditions.
Furthermore, its evolution is pending the completion of Gol's reorganization plan under Chapter 11 and the receipt by Abra of the corresponding consideration.
According to Gol, the agreement has no impact on its strategy, business conduct or daily operations. The company remains focused on completing the remaining steps in its ongoing Chapter 11 process with the goal of emerging from its restructuring process as an independent and well-capitalized company.
