AVIANCA and TACA officially close their shareholders agreement
02-Feb-2010 ·Upon successfully concluding the regulatory and antitrust approval process, the shareholders of AVIANCA-TACA have officially closed their agreement which seeks to create the largest and most comprehensive air transport network of passenger and cargo services in Latin America.
·This alliance will allow more destinations and a broader range of options while capturing synergies for the benefit of clients, the communities and countries where the airlines operate.
BOGOTA, Colombia; SAN SALVADOR, El Salvador and LIMA, Peru, February 2nd, 2010. After completing the regulatory and antitrust approvals required to create the joint venture announced in October 2009, Synergy Aerospace Corp, majority shareholder of AVIANCA, and Kingsland Holding Limited, owner of Grupo TACA, informed today that they have closed their agreement to officially start its strategic integration.
This agreement allows the shareholders to contribute their investments in AVIANCA and Grupo TACA into a new company which will be named "AVIANCA-TACA Limited" domiciled in Bahamas, in which Synergy Aerospace Corp will own 67%. and Kingsland Holding Limited, 33%.
As per this agreement, the new Company's executives will implement a plan aimed to control, promote and strengthen the group of airlines that make part of AVIANCA and TACA and that constitute the network with the largest coverage in Latin America. The Shareholders' Agreement provides that all strategic decisions are to be made by consensus (merge of equals concept).
Grupo TACA includes TACA INTERNATIONAL, and its share in LACSA, TACA PERU, AVIATECA, SANSA, LA COSTEÑA, AEROPERLAS and ISLEÑA airlines. AVIANCA includes: AVIANCA, SAM and TAMPA, as well as the purchase option that Grupo Synergy has of AEROGAL in Ecuador and OCEANAIR in Brazil.
The Joint Venture and synergies capture process
The joint venture process is to be made in phases, with the main purpose of innovating for the benefit of markets and travelers, moving progressively into a strategic integration that allows strengthening the competitive position of the airlines in Latin America, with a common vision.