US investment fund Blackrock Investment Management has sold a portion of its preferential shares and American Depositary Receipts (ADRs) in Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos), reducing its stake in the Brazilian airline from 5.061% to 4.716%, Reuters reported.
The divestment follows reports that alleged Azul was in discussions with shareholders to optimise its equity structure and develop a new plan to improve its profitability and liquidity. The airline’s chief executive officer, John Rodgerson, publicly denied rumours Azul could file for Chapter 11 bankruptcy protection in the United States.
In July, ch-aviation reported that Blackrock had acquired more preferential shares and ADRs in Azul, raising its ownership to 5.061%.
Azul’s New York Stock Exchange share price has fallen by 37.75% over the last month while plunging by 70.6% between September 2023 to date.
Meanwhile Brazil’s national secretary for civil aviation, Tomé Franca, said government is following Azul’s issues “calmly” because the carrier “is an extremely consolidated and structured company in the aviation market, with strong regional reach.
Azul was not immediately available for comment.
