Gol firms up plans to acquire WebJet

Washington DC
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Shortly after formally acknowledging it was in discussions for an acquisition of WebJet, Gol has declared it will purchase its fellow Brazilian low cost carrier for 96 million Reais ($61.3 million).

Gol said its VRG subsidiary has executed a memorandum of understanding with the controlling shareholders of WebJet to acquire 100% of the carrier's stock. CVC Turismo's owner Guilerme Paulus acquired WebJet in 2007.

WebJet has an enterprise value of 310.7 million Reais, said Gol. According to Flightglobal's ACAS database Rio de Janeiro-based WebJet operates a fleet of Boeing 737-300s, while Gol operates an all Boeing Next Generation 737 fleet.

WebJet's future has been in flux during the last year as the carrier held talks in late 2010 with low cost carrier Ryanair over the Irish airline possibly taking a stake. In February of this year WebJet registered for an initial public offering on Sao Paulo's Bovespa stock exchange.

Gol is practised in the airline acquisition process in Brazil after acquiring Varig successor VRG in 2007.