Brazil's Gol and Colombia's Avianca to create holding company Abra Group (updated)

Kingsland Global

11/05/2022 13:46

(Adds details)
    SAO PAULO, May 11 (Reuters) - Brazilian airline Gol Linhas
Aereas Inteligentes SA  GOLL4.SA  and Colombia's Avianca said on
Wednesday they have agreed to create a holding company called
Abra Group, which will control both firms and bring together
their brands under a single holding.
    Abra Group will be co-controlled by the principal
shareholders of Avianca and the majority shareholder of Gol,
they said in a press release, adding that both airlines will
continue to operate independently and maintain their respective
brands.
    They also said certain financial investors have committed to
invest up to $350 million in shares of Abra Group upon the
closing of the deal, which is expected to happen in the second
half of 2022.
    According to a separate Gol securities filing, the
transaction involves its controlling shareholder, investment
fund MOBI FIA, and certain shareholders of Avianca Holdings SA
 AVT_p.CN  including Kingsland International Group SA, Elliott
International LP and South Lake One LLC.
    MOBI FIA will contribute its GOL shares to the newly formed
company in exchange for common shares of Abra, Gol said, adding
that the holding is set to be a private limited company
incorporated under the laws of England and Wales.
    

 (Reporting by Gabriel Araujo, Editing by Louise Heavens)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))