By Michael Dabaie
GOL Linhas Aereas Inteligentes SA ADRs were up 4% to $7.63 in late-morning trading after the Brazilian carrier said it will receive an equity investment of $200 million from American Airlines Group Inc.
GOL said Wednesday it agreed to expand its commercial cooperation with American Airlines through an exclusive codeshare agreement for the next three years. The agreement expands the existing codeshare partnership between GOL and American, in place since February 2020, GOL said.
American will invest $200 million in 22.2 million newly issued preferred shares of GOL, for a 5.2% participation in the company's economic interest at $9.00 per preferred share, GOL said.
"We believe that this will bolster GOL's presence in international markets, accelerate our long-term growth, and maximize value for our shareholders," GOL Chief Executive Paulo Kakinoff said.
GOL ADRs are down 22% in the year-to-date period.
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(END) Dow Jones Newswires
September 15, 2021 12:05 ET (16:05 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.