Gol Linhas Aereas Inteligentes S.A. [NYSE: GOL] disclosed that it has inked an agreement to buy MAP Transportes Aéreos Ltda. The firm’s buying decision highlights the firm’s ongoing commitment to increase the demand for passenger air transportation in Brazil.
Additionally, its management notices an incomparable market opportunity for rational merging in the Brazilian aviation market, as the country’s economy improves from COVID-19.
Since its inception in 2011, MAP has gained recognition as the fifth-largest Brazilian domestic airline, with a fleet of seven 70-seat ATRs that run 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. Furthermore, the firm has exhibited that GOL is well-positioned for growth in the post-pandemic cycle through its performance.
GOL disclosed that there are three main advantages of this acquisition. The firm benefit is to provide new destinations and routes, as a complement to its current network at Congonhas Airport, that will offer a broader range of flight possibilities for passengers and greater expediency for clients. Moreover, this acquisition will offer higher seat density to historically underserved Markets. In addition to this, this acquisition will also enhance cost-efficient operations.
MAP will be bought for R$28 million in cash and stock. The amount to be paid upon the fulfillment of all execution provisions. It included 100,000 GOLL4 shares at R$28 per share and R$25 million in cash. This amount will be paid in twenty-four monthly installments. The firm will assume up to R$100 million of MAP’s financial commitments at execution.