Colombia’s Avianca Holdings is weighing options that could include the sale of a controlling stake to Delta Air Lines or United Airlines, according to sources familiar with the process.
Potential bids were due last week, two M&A sources said.
Avianca’s controlling shareholders, brothers Germán and José Efromovich, have hired Bank of America Merrill Lynch to advise on a potential sale or partnership, the sources said. A spokesperson for Bank of America declined to comment. Representatives for Delta Air Lines and United Airlines also declined to comment.
Avianca could receive a cash and stock offer of roughly $500m for the sale of a controlling stake, one of the sources said.
Avianca’s operating income increased to $83.4m in Q3 2016 from $81.8m in the same quarter last year, but revenues declined to $1.06bn in Q3 this year from $1.09bn in the same quarter of 2015.
The airline recently named Roberto Held Otero as its new CFO. Prior to joining Avianca, Otero was CFO of Colombian coffee marker Procafecol. He replaces Gerardo Grajales, who will head Avianca’s new strategic business unit.