Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Brazil's Gol to receive $200 million from American Airlines, shares rise

09/15/2021 | 10:30am EDT
FILE PHOTO: An American Airlines plane takes off from Sydney Airport in Sydney

SAO PAULO (Reuters) -Brazilian airline Gol announced an exclusive three-year codeshare agreement with American Airlines, sending shares higher on Wednesday.

Gol said it will receive a $200 million equity investment as part of the agreement, according to a securities filing on Wednesday, making its preferred shares jump about 5% in early trading in Sao Paulo, outperforming the broader Bovespa index, which fell 0.5%.

Gol said the new agreement builds on a previous codeshare arrangement between the two companies, and will increase options for Gol travelers on South American and North American routes.

American Airlines' investment in Gol is expected to happen via a sale of 22.2 million recently issued preferred shares by the Brazilian airline, taking the U.S. firm's stake in Gol to 5.2%.

"We believe it will further strengthen Gol's presence on international markets, accelerate our long-term growth and maximize value for our shareholders," Gol Chief Executive Officer Paulo Kakinoff said.

Analysts at J.P. Morgan said in a market report that they welcome the additional liquidity provided by American Airlines' investment in Gol, as it should further enhance the Brazilian company's financial flexibility, even though they remain cautious with the airline industry in Latin America.

"Today's announcement represents a further evolution in the American-Gol partnership, in our view, rather than anything revolutionary," J.P. Morgan said, adding that American's right to appoint one member to Gol's board may imply a desire by the U.S. company to exert as much influence as possible.

(Reporting by Ana Mano and Gabriel Araujo; Editing by Louise Heavens and Mark Porter)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AMERICAN AIRLINES GROUP INC. 2.18% 19.6 Delayed Quote.21.94%
BELIEVE 0.30% 17.63 Real-time Quote.0.00%
IBOVESPA -1.60% 106913.31 Delayed Quote.-10.69%
Latest news "Economy & Forex"
11:42aCiti analysts back new development bank to meet climate goals
RE
11:42aU.S. regulators exploring how banks could hold crypto assets - FDIC chairman
RE
11:39aWhite House confirms Biden will nominate Rosenworcel for new FCC term
RE
11:39aBiden nominates acting fcc chair rosenworcel to lead u.s. telecoms regulator
RE
11:19aPound at 20-month high vs euro on diverging central bank bets
RE
11:14aFCC votes to terminate China Telecom Americans authority to provide U.S. services
RE
10:54aLuckin Coffee reaches $175 million class action settlement over accounting fraud
RE
10:53aChina's Modern Land defaults on bond payment; property shares drop
RE
10:48aJapan startup unveils $680,000 hoverbike
RE
10:35aDollar hovers in narrow range ahead of central bank meetings
RE
Latest news "Economy & Forex"