Post by livinginmedellin on Nov 2, 2016 16:05:04 GMT -5
Avianca Holdings is considering options including the sale of a controlling stake and would receive bids next week from suitors among which include Delta Air Lines Inc. and United Continental Holdings Inc., according to people familiar with the matter.
Offers that could be submitted until November 9, would include about $ 500 million in new capital for the airline, plus the purchase of common shares of existing shareholders, the sources said.
In addition, it is also expected that the airline Copa Holdings S.A. present an offer.
Avianca has been seeking a partner to help strengthen its balance sheet and to sustain growth. The airline is controlled by Germán and José Efromovich brothers who have to guarantee most of its shares for a loan of Elliott Management Corp., Bloomberg News reported in July.
Elliott, controlled by billionaire Paul Singer, has been active in the search for partners for the airline and has met with potential bidders, sources said. Avianca, Delta, United and Copa declined to comment, as did Elliott, who did not respond to a request for comment.
However, Avianca is considering bids for a controlling stake, respondents said. Alternatively, control of the airline could end up divided between the new supplier, the Kingsland Efromovich and brothers Holdings Ltd., a partner of the current controlling group. Kingsland is controlled by the Kriete family, which merged Taca, a Central American airline with Avianca in 2010.
Avianca, with a market value of almost $ 800 million mobilized through August 58 percent of domestic passengers of Colombia.
Its debt is one of the main risks, and efforts to limit debt and slow the expansion of capacity is "welcome," said Renato Mimica, BTG Pactual analyst, in a report on Oct. 24.
The possible agreement Avianca is developing Efromovich while the brothers face challenges on another front. Oceanair Linhas Aereas, which operates as Brazilian airline Avianca Brazil, failed to meet the payment of more than $ 4 million for the lease of a passenger plane A330 of Airbus Group, according to a lawsuit filed by Wells Fargo & Co.
See (in Spanish): www.eltiempo.com/economia/empresas/ofertas-por-avianca-de-delta-y-united/16740682
Offers that could be submitted until November 9, would include about $ 500 million in new capital for the airline, plus the purchase of common shares of existing shareholders, the sources said.
In addition, it is also expected that the airline Copa Holdings S.A. present an offer.
Avianca has been seeking a partner to help strengthen its balance sheet and to sustain growth. The airline is controlled by Germán and José Efromovich brothers who have to guarantee most of its shares for a loan of Elliott Management Corp., Bloomberg News reported in July.
Elliott, controlled by billionaire Paul Singer, has been active in the search for partners for the airline and has met with potential bidders, sources said. Avianca, Delta, United and Copa declined to comment, as did Elliott, who did not respond to a request for comment.
However, Avianca is considering bids for a controlling stake, respondents said. Alternatively, control of the airline could end up divided between the new supplier, the Kingsland Efromovich and brothers Holdings Ltd., a partner of the current controlling group. Kingsland is controlled by the Kriete family, which merged Taca, a Central American airline with Avianca in 2010.
Avianca, with a market value of almost $ 800 million mobilized through August 58 percent of domestic passengers of Colombia.
Its debt is one of the main risks, and efforts to limit debt and slow the expansion of capacity is "welcome," said Renato Mimica, BTG Pactual analyst, in a report on Oct. 24.
The possible agreement Avianca is developing Efromovich while the brothers face challenges on another front. Oceanair Linhas Aereas, which operates as Brazilian airline Avianca Brazil, failed to meet the payment of more than $ 4 million for the lease of a passenger plane A330 of Airbus Group, according to a lawsuit filed by Wells Fargo & Co.
See (in Spanish): www.eltiempo.com/economia/empresas/ofertas-por-avianca-de-delta-y-united/16740682