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GOL To Acquire Brazilian Airline MAP Transportes AĆ©reos
Friday 11 June 2021

Brazil-based domestic airline GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL) (B3: GOLL4) has entered into an agreement to acquire Brazilian domestic airline MAP Transportes Aéreos Ltda, which has flight routes to regional destinations and São Paulo's Congonhas Airport, the company said.

The acquisition reflects the company's on-going commitment to expanding the demand for passenger air transportation in Brazil and what its Management perceives to be an unparalleled market opportunity for rational consolidation in the Brazilian aviation market, as the country's economy recovers from Covid-19.

Founded in 2011, MAP is the fifth-largest Brazilian domestic airline, with a fleet of seven 70-seat ATRs that operate on routes in the Amazon region from the Manaus Airport and Brazil's South and Southeast regions from Congonhas, the country's largest domestic airport.

The realization of this Transaction will reinforce GOL's leading positioning in two of its main bases, with growth of approximately 10% at CGH via the addition of 26 daily flights.

Thus, the company will be able to serve new destinations connecting South America's largest city to historically underserved domestic markets, as the restrictions resulting from the pandemic are reduced or eliminated.

GOL maintains its single-fleet fleet strategy to service these new routes in a cost-efficient and sustainable way.

The company also has the additional flexibility to evaluate new aircraft types or partnerships that can service these regional markets more cost efficiently, with no future obligation as it relates to MAP's current fleet.

MAP will be acquired for BRL 28m (USD 5.54m) in cash and stock, to be paid upon satisfaction of all closing conditions, comprised of 100,000 GOLL4 shares at BRL 28 per share and BRL 25m in cash to be paid in twenty-four monthly installments.

At closing, the company will assume up to BRL 100m of MAP's financial obligations.

The transaction closing is subject to certain conditions precedent, including approvals and confirmations by Brazil's National Civil Aviation Agency and by Brazil's Administrative Council for Economic Defense.

GOL serves more than 36 m passengers annually. With Brazil's largest network, GOL offers customers more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States.

GOLLOG's cargo transportation and logistics business serves more than 3,400 Brazilian municipalities and more than 200 international destinations in 95 countries.

SMILES allows over 16m registered clients to accumulate miles and redeem tickets to more than 700 destinations worldwide on the GOL partner network.

Headquartered in São Paulo, GOL has a team of approximately 14,000 highly skilled aviation professionals and operates a fleet of 127 Boeing (NYSE: BA) 737 aircraft, delivering Brazil's top on-time performance and an industry leading 20-year safety record.

GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL's shares are traded on the NYSE and the B3 (GOLL4).
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Date Published: 11/06/2021

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