PPVRA From Brazil, joined Nov 2004, 8873 posts, RR: 40 Posted (8 years 11 months 2 weeks 6 days 22 hours ago) and read 2674 times:
Tuesday May 3, 8:37 AM EDT
SAO PAULO -(Dow Jones)- The U.S.-based Texas Pacific Group (TPG.XX) is looking at a possible purchase of Brazil's largest airline, Viacao Aerea Riograndense SA (VAGV4.BR), or Varig, local newspaper O Estado de Sao Paulo reported in its Tuesday editions.
The U.S. group has begun an analysis of Varig's financial situation in a process that could extend over 90 days, the newspaper said.
Meanwhile, Varig itself - burdened by huge debts - is analyzing several other acquisition proposals, according to local reports.
Two Brazilian entrepreneurs, Nelson Tanure and German Efromovich, have separately expressed an interest in buying Varig. According to market analysts, Brazil's Planner Group, a Portuguese investment group and a Swiss group have also submitted offers.
If the Texas Pacific Group were to buy a stake in Varig, it would need a Brazilian partner. Under current laws, Brazilian airlines can't be controlled by overseas owners.
EddieDude From Mexico, joined Nov 2003, 7523 posts, RR: 43
Reply 4, posted (8 years 11 months 2 weeks 6 days 12 hours ago) and read 2516 times:
Quoting PPVRA (Reply 3): Anyone knows the answer for this? If true, that would make things very interesting...
I have no idea (and to be perfectly honest, I am too lazy to check CO's SEC filings to see who their main shareholders are) but the answer is likely no (or not in a substantial proportion). The nature of private equity (also called venture capital) investors like Texas Pacific is that they make an investment that is intended from the beginning to last only a certain term (in Spanish that term is referred to as investment horizon in the private equity slang... dunno in English). The idea is that the fund will cash out its investment (private equity investments are made hoping that returns will be geometric, hence the name venture capital) through the sale of the portfolio company (in this case CO) whether to another fund (a secondary p.e. investment), or to a strategic investor, or to the public via an IPO (other more complex alternatives can be considered in special circumstances like a redemption of shares and massive profit distribution, etc.). Since CO is publicly-traded (well, its parent company is), my best guess is that Texas Pacific sold all or most of its interest in CO (in CO's parent company) by selling its shares in the market. Therefore, I would venture to suggest that Texas Pacific no longer owns any shares of CO, or it owns a non-significant portion that is merely considered an asset management investment.