US investment fund Blackrock Investment Management has announced the acquisition of more preferential shares and American Depositary Receipts (ADRs) in Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos), upping its percentage of outstanding preferred shares in the Brazilian airline to 5.061% as of July 4, according to a filing to the market.
Blackrock has denied any interest in changing the airline's control or management structure. In aggregate, the hedge fund’s preferred shares increased to 16,171,414, and ADRs to 274,481 - the latter representing 823,443 shares - to make a total of 16,994,857 preferred shares in the Brazilian carrier.
Previously, as of December 31, 2023, the investment firm held a 4.84% economic interest in Azul, behind only Calfinco (7.75%) and Bozano Group (5.78%), but just a 1.33% percentage of total capital stock in the company, according to Azul's 2023 Annual Report.
The investment announcement took place amid an ongoing Azul stock price decline at the New York Stock Exchange and merger discussions between Azul and GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas). Reportedly, the David Neeleman-founded company is working on submitting a merger proposal in the next three months.
