GOL, a Brazilian domestic airline, agreed to merge with SMILES, a Brazilian company which manages Smiles loyalty program, in a $293m deal. For each SMILES share, GOL will provide R$9.14 and 0.6601 preferred share issued by GOL, and R$22.54, 0.1650 preferred share issued by GOL upon when exercised the option. The Merger would result in the combination of the two operating subsidiaries of GOL, maximizing value for all shareholders by aligning the business objectives of both entities, ensuring the continued competitiveness of the airline and the loyalty program, simplifying corporate governance, strengthening the combined capital structure, and reducing operating, administrative and financial costs, and reducing tax inefficiencies.