TAM Issues Shares on the New York Stock Exchange
March 14 2006 - 6:46PM
PR Newswire (US)
SAO PAULO, Brazil, March 14 /PRNewswire-FirstCall/ -- TAM S.A.,
(Bovespa: TAMM4 and NYSE: TAM), issued Shares, in the form of ADSs
(American Depositary Shares) represented by ADRs (American
Depositary Receipts) begin to be traded last Friday on the NYSE -
New York Stock Exchange with the symbol TAM. The IPO - initial
public offering of shares on the NYSE corresponds to the
international offer and is part of the global offer that TAM is
making in Brazil and abroad by means of a simultaneous primary
distribution of 5,000,000 new preference shares and a secondary
distribution of 30,618,098 shares belonging to existing
shareholders. The international offer can be increased by a
supplementary lot of up to 15% of the total ADSs initially offered.
These options are designed exclusively to meet a possible excess of
demand which might be detected during the Global Offer. The net
resources obtained from the share issue giving rise to the primary
distribution will be used by TAM S.A. entirely to finance its
activities by means of capital infusions in its operational
subsidiaries. It is intended that 80% of such resources will be
used to finance the renewal and expansion of its fleet, with the
acquisition or lease of aircraft. The remainder of resources will
be used for working capital. This operation is being coordinated by
Credit Suisse (USA) LLC and Pactual Capital Corporation as joint
global coordinators and bookrunners and Merrill Lynch (joint lead
manager). The publication of the announcement of the termination of
the offer is expected for April 17. In Brazil, the shares of TAM
are traded at Level 2 on the Sao Paulo stock exchange - BOVESPA.
Level 2 corresponds to companies who adopt differentiated practices
of corporate governance as defined by the Brazilian stock exchange.
Furthermore, TAM's corporate statutes assure all shareholders the
right to be included in a public offer for control of the Company,
thus ensuring they receive treatment equal to that given to the
majority or controlling shareholder - i.e. a full 100% tag along.
TAM has been the market leader in civil aviation in Brazil since
July 2003 and in February 2006 obtained a market share of 44.4%,
according to data provided by DAC. At present, the Company flies to
46 destinations in Brazil. When agreements with regional carriers
are taken into consideration, the total number of domestic
destinations increases to 73. International operations comprise
direct flights to five destinations: New York and Miami (USA),
Paris (France), Buenos Aires (Argentina) and Santiago (Chile). With
its subsidiary TAM Mercosur, it serves a further seven
destinations: Assuncao, Ciudad del Este and Pedro Juan Caballero
(Paraguay), Montevideu and Punta del Este (Uruguay), Santa Cruz de
la Sierra and Cochabamba (Bolivia). Furthermore it maintains
code-share agreements with international airlines which permit that
the passenger can fly to a great diversity of destinations
throughout the world. DATASOURCE: TAM CONTACT: Investor Relations:
+55-11-5582-9715, Fax: +55-11-5582-8149, - acess Investor
Relations, Press Agency: +55-11-5582-8167, Fax: +55-11-5582-8155,
Web site: http://www.tam.combr/
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