Ex-CEO interested in Groundforce if sale falls apart

  • ECO News
  • 18 June 2021

To ECO, Paulo Neto Leite said that he intends to return to managing the company and become a shareholder.

The former CEO of Groundforce, Paulo Neto Leite, is preparing to buy the company alongside a fund that brings together national and foreign capital. To ECO, the businessmen explained he is willing to move forward if the operation with one of the three international parties interested in Groundforce does not go ahead.

“It is one scenario that could happen,” Neto Leite replied, when asked if he intends to buy the handling company from which he was removed in May. “Right now, Groundforce needs an international player, but I don’t rule out that – with a fund behind it – it could move forward. If the other solutions do not materialise, I will always be ready to step forward.”

The plan to do this involving a fund – which he prefers not to mention, saying only that it has Portuguese and foreign capital – is “designed and ready to go”. What’s left? “That the current sale process is resolved. If it doesn’t succeed and another solution needs to be found, I’m available.”

Right at the beginning of the year, when the company’s financial difficulties began (caused by the impact of the pandemic on the aviation sector), there were expressions of interest in Groundforce. After months of negotiations with TAP (major client and minority shareholder with 49.9% of the capital), Alfredo Casimiro (owner of 50.1% through Pasogal) confirmed on May 8 he was available to sell his stake.

The entrepreneur has hired the Nomura bank to advise on a potential deal. After a period of exclusive negotiations with the Spanish Atitlan, negotiations are currently underway with Aviapartner, Swissport and WFS. But this is not the only possible route for the company, which could still enter insolvency proceedings if the courts validate TAP’s request.

The position held by Pasogal is under three liens (two in Montepio and one in Novo Banco) and, after defaulting, was subject to an extrajudicial execution. Montepio has hired Bison Bank to organise an auction of the shares, and is waiting for the result of Deloitte’s assessment. “This is where I come in,” explains Neto Leite, who – in this scenario of acquisition by a consortium – would once again be responsible for the company’s management, but would also keep part of the shares.

As with the other interested parties, this consortium also wants guarantees of renewal of the contract with TAP and the licences from the National Civil Aviation Authority (ANAC) to operate at national airports, which expire between 2023 and 2025. However, no proposal has yet been formalised with the government or the airline and Neto Leite did not provide the amount that he is willing to pay to the banks.