- Azul said that all other contractual conditions remain;
- The transaction depends on Azul’s corporate approval.
The Brazilian airline Azul announced an agreement with the Portuguese government to divest from its stake in Portuguese airline TAP. The company has sold its indirect 6% stake for nearly $12.15 million (BRL 65 million).
READ ALSO: Azul and Latam sign codeshare agreement to connect domestic routes in Brazil
READ ALSO: After Latam and Avianca, Aeromexico files for bankruptcy protection
The deal with Portugal’s government will allow a capital injection in TAP Airlines. With it, Azul will not exercise rights to convert 90 million euros bonds maturing in 2026 into equity. The principal amount plus accrued interest of the bond corresponds to nearly $127 million (BRL 680 million), says Azul. The transaction remains subject to Azul’s required corporate approvals, including shareholders’ approval at an extraordinary shareholders meeting.